US Midwest interior basis bids for soyabean and corn were mostly steady to firm early Wednesday due to a lack of farmer sales, dealers said. "Farmers are waiting for prices to rally, after the big price gains earlier this month," one Indiana dealer said. "They seem to be hoping to sell soyabeans above $6.50 per bushel." Other dealers said cash trade remained quiet ahead of Thursday's key government reports.
The US Department of Agriculture will release at 7:30 am CST (1300 GMT) on Thursday its 2005 US planting intentions and quarterly US grain stocks data.
Analysts on average forecast 2005 US corn plantings at 82.383 million acres, larger than last year's 80.9 million acres, and the biggest in 20 years. US 2005 soyabean seedings were projected at 73.368 million acres, less than the 75.2 million acres planted last year.
Analysts pegged US March 1 soyabean stocks at 1.425 billion bushels, sharply above the year ago total of 0.906 million bushels. Corn stocks were seen at 6.721 billion bushels, above last year's 5.271 billion bushels.
Illinois and Mississippi River spot corn basis bids weakened, but spot soyabean basis bids were steady to firm early amid slow movement, dealers said. Barge freight rates were weak early.
Spot US Gulf CIF soyabean basis bids were steady to weak early and spot CIF corn basis bids were likewise steady, export sources said.
CBOT soyabean futures were called to open up 1 cent to 2 cents per bushel on short-covering and positioning ahead of Thursday's USDA reports, brokers said. Overnight US soyabean export sales were quiet.
CBOT corn futures were called up 1/2 to 1 cent a bushel on follow-through buying after Tuesday's firm close and positioning ahead of Thursday's USDA report, brokers said. Overnight US corn export sales were quiet.
CBOT wheat futures were called up 1/2 to 1 cent per bushel in a mild bounce to Tuesday's close, brokers said. Overnight US wheat export sales were quiet. Meanwhile, Turkey sold 45,000 tonnes of durum and French grain office ONIC received offers to sell 170,320 tonnes of wheat into intervention stores in the past week.
Iraq said it had suspended a deal to buy 1.0 million tonnes of wheat from Australia because of overcharging, potentially supportive for CBOT wheat, brokers said. CBOT traders said it was probably a political issue.
However, shipping agents said Australian wheat was still being offloaded at Iraq's Umm Qasr port.
Cash US Midwest basis bids for soft red winter wheat were also steady to firm early Wednesday and sales were slow, dealers said.