Soybean spot basis bids were sharply higher at processing plants around the US Midwest on Monday, supported by tight existing supplies and a slow pace of farmer sales, traders said. Farmers delayed sales of soybeans, corn and wheat as futures for the crop tumbled on overall favourable growing conditions in the United States. However, soybean basis bids were narrowly lower along Midwest river terminals, pressured by seasonally slow export demand amid cheaper supplies on offer in Brazil and Argentina.
Buyers along the rivers also were bidding against Chicago Board of Trade August futures, which were trading at a roughly 42 cents per bushel premium to November futures, the contract most processors were bidding against. Each group of buyers was adjusting its basis to account for fluctuations in that futures spread. Corn spot basis bids were higher at an ethanol plant in Linden, Indiana, and otherwise mostly unchanged. Soft red winter wheat bids fell by 5 cents in Burns Harbor, Indiana, where much of the recent harvest was hurt by rains late in the growing season, resulting in elevated fungus and disease.
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