Cash basis bids for corn and soyabeans were steady to lower around the US Midwest on Wednesday while harvest progress was stalled in portions of the region due to rain showers a day earlier, grain merchants said. More rain was expected later this week in western parts of the US Corn Belt which could lead to spotty harvest activity, an Ohio dealer said. However, harvest was expected to resume in the eastern portion of the region as damp conditions dry out.
Over the previous weekend, prior to the rain showers on Tuesday, soyabean harvest had accelerated which pressured basis bids earlier this week. Now some locations, such as a processor in Lafayette, Indiana, have gone from having historically high basis bids due to tight supplies a few weeks ago to sharply dropping bids and trimming dumping hours due to the arrival of freshly harvested soyabeans. Soyabean bids declined by 15 cents per bushel at a processing plant in Sioux City, in north-west Iowa, where the basis has fallen 50 cents so far this week.
Both Chicago Board of Trade soyabean futures and corn futures rebounded on Wednesday, but cash prices remain lower than farmers' target prices. The growers have been delivering crops to fulfil previous contracts but then storing away much of their freshly harvested crop supplies.
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