Corn and soyabean spot basis bids were mostly steady to lower around the US Midwest on Tuesday amid pressure from a rally in the futures market and the ongoing harvest of both crops, grain merchants said. But sales of each commodity were limited as farmers took a bullish stance, the dealers said.
Cash price targets for corn now pegged at $4.50 to $5 per bushel while farmers eyed $10.50 to $11 per bushel of soyabeans. Some farmers delivered freshly harvested loads of both crops to satisfy contracts sold earlier this year at prices lower than current levels. Other farmers sold spot loads and planned to meet existing contracts later this month. Weather conditions remained largely ideal for corn to dry down naturally in the field. Scattered showers are forecast Wednesday in the western Midwest, which may slow harvest activity, a meteorologist said.
A majority of soyabeans were still green and not yet dropping leaves. Widespread harvest of the oilseed is still at least a week away in much of the Midwest. However, soyabean bids have fallen sharply at some processors this week as the crushing plants prepare for the influx of new supplies. Corn bids were also mostly steady to lower but bids rose by 1 cent in central Illinois.
Corn bids eased at rail terminals in the southern US Plains as demand slowed due to high prices for the grain, a dealer there said. Barge freight costs were unchanged on Midwest rivers. Talk of disappointing yields in the early US corn harvest boosted futures while soyabeans turned firm amid the rise in corn. Wheat eased on news that Australia boosted its wheat exports forecast.
Comments
Comments are closed.