US CIF Gulf corn and soyabean basis values for June shipment were weak on Monday after rains boosted crop prospects across much of the Midwest. Traders said prices for deferred shipment, however, were supported by generally slow grain movement, and pockets of dry weather in top growing states like Illinois. Tight supplies of empty barges were supporting barge freight on the lower Ohio River, while prices on the Illinois and lower Mississippi River were mostly steady.
Rains over the weekend in some dry areas of the Midwest such as Indiana sparked scattered farmer selling. "We are buying some new crop corn," a southern Indiana trader said. "We have enough moisture around here for about two weeks."
Another trader located in the St. Louis area also said that crop beneficial weekend rains were pressuring corn prices. "Nearby values are lower," he added.
Traders said first-half June shipment corn was bid at a low 23 cents a bushel premium the CBOT July.
The traders also the US corn industry was working with importers from Japan on "what it can do and what it cannot" in ensuring that shipments are not tainted with Bt-10, an unapproved genetically modified variety grown from 2001 to 2004.
Soyabean basis values for June shipment were weighed by crop beneficial rains, but traders said movement was slow.
Demand from domestic processors continued to support basis values, but export demand remained sluggish.
Hard red winter wheat basis values were steady, supported by rain delays to the harvest, traders said. There was continued talk of lower than expected protein content, but traders said the harvest was still in the early stages.