Spot corn basis bids were steady to weaker in the US Midwest interior early on Tuesday, and soyabean basis levels were mostly steady to weaker, on pressure from Monday's futures rally and active country movement, merchandisers said. Weak CIF Gulf barge values for both corn and soyabeans on Monday, along with higher barge freight values, pressured the corn and bean basis at interior river locations. CIF corn basis levels continued to weaken Tuesday morning, but the soyabean basis was firm, as more corn moved out of the country Monday than beans, merchandisers said.
A further rally in futures prices could unleash more farmer selling, they said.
"They think it should go higher," said an Ohio merchandiser of local producers.
But pit brokers at the Chicago Board of Trade said they expect corn futures to open 1 to 2 cents per bushel lower, and soyabeans 1 to 3 cents lower, in a setback from Monday's rally.
Prices rallied sharply Monday when investment fund buying extended early gains made on poor crop weather conditions. Cool temperatures were inhibiting corn and soyabean germination in the Midwest, and hot weather was stressing the winter wheat crop in the Plains.
The US Department of Agriculture late Monday said 95 percent of the US corn crop was planted as of Sunday, ahead of the five-year average of 88 percent. It said 66 percent had emerged, matching the five-year average, and that 63 percent was in good to excellent condition, near trade expectations but behind last year's 71 percent.
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