Spot basis bids for corn and soyabean were stronger at river locations in the US Midwest on Monday because of cheaper barges while interior bids were steady to weaker as dealers were seeing freshly harvested crops move into elevators.
But sales remained on the lighter side given harvest time because of low cash prices. Sales were also light with weekend rains keeping farmers out of the fields.
"The rain is holding things back a little bit," said an Indiana dealer. "This week, we'll be letting loose."
Along Midwest rivers, barge freight costs dropped during the weekend, which allowed dealers to firm bids. Soybean bids jumped 9 to 16 cents per bushel and corn bids rose 2 to 6 cents, dealers said.
Barge freight costs soared earlier this month amid export disruptions caused by Hurricane Katrina but were beginning to back off late last week as business resumed at the US Gulf.
When the corn harvest resumes, farmers were expected to hold on to new-crop corn and take loan deficiency payments (LDPs) offered by the US government when cash prices are so low. LDPs for corn were steady in Iowa on Monday and rose 1 to 3 cents per bushel elsewhere. LDPs ranged from roughly 39 to 55 cents per bushel in the Midwest.
Chicago Board of Trade soyabean futures were expected to open 1 to 2 cents per bushel higher with the market technically oversold and export interest increasing because of low prices, traders said.
CBOT corn was called steady to 1/2 cent higher as the market attempts to consolidate after the recent slide in prices. CBOT soft red winter wheat futures were called 1/2 to 1 cent lower on a mild setback after gains on Friday.
Comments
Comments are closed.