US CIF Gulf corn basis values were mostly steady on Monday while soyabeans were weak amid ample supplies in the pipeline and sluggish demand. Traders said farmers were taking advantage of the mild weather in parts of the Midwest to plant corn, especially in southern Indiana and Illinois. A trader said up to 2,500 acres were planted over the weekend in Illinois, and several hundred acres in Indiana.
"Farmers are going to hit it hard from April 1," he said. Traders said farmer selling of both corn and soyabeans had slowed after a strong pickup the last two weeks when active buying by funds boosted CBOT futures. "Movement has dried up," a trader said.
E-cbot futures were lower overnight, and CBOT futures were called to open lower on Monday.
Sluggish export demand for soyabeans and ample supplies in the pipeline weighed on basis values, traders said.
Export demand is expected to remain thin as the dollar rose to two-week highs against the euro, and firmed against the yen on speculation the pace of interest rate hikes could quicken.
Traders in Asia said on Monday there was talk of China possibly cancelling the purchase of one cargo of soyabeans. US traders were unable to confirm any cancellation, but said it was likely a purchase from Brazil or Argentina.
Corn basis values were mostly steady, underpinned by the slowdown in farmer selling, traders said.
The traders said export demand has been steady, but added that a stronger dollar could dampen interest. They said competition from China was expected to increase, especially to markets in Asia where Beijing has a freight advantage.
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