Spot basis bids for soyabeans were lower at processors and elevators around the US Midwest on Monday, pressured by harvesting over the weekend, dealers said. Several locations were open through the weekend to accept freshly cut crops as the pace of the harvest accelerated around the region. The new supplies fulfilled previous contracts and weighed on basis bids, which kept farmers from inking new contracts, dealers said.
Corn basis bids were also lower. Farmers remain discouraged by current cash prices and choose to store away freshly harvested corn rather than sell, dealers said. In Indiana, farmers needed prices at least at $4.50 per bushel to break even. With front-month Chicago Board of Trade corn futures at about $3.23 per bushel and basis bids ranging between 2 cents to 40 cents per bushel below that price, farmers remain uninterested in selling at current cash-price levels.
"Storage space will have a lot of value and will feel the pressure," an Indiana grain merchant said. Agricultural meteorologists at MDA Weather Services said clear weather will allow the harvest to continue during the next two days. But later in the week, showers are forecast for the Western Corn Belt. They are expected to move east and disrupt the harvest but end on Saturday. The US Department of Agriculture will release its weekly crop progress and conditions report later on Monday. The US Department of Agriculture will release its quarterly US grain stocks report at noon EDT (1600 GMT) on Tuesday.
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