US Midwest corn firmer; soyabean and wheat flat

12 May, 2006

Cash basis bids for corn were steady to firmer around the US Midwest Thursday due to the slow pace of farmer selling in recent weeks, while soyabean and wheat bids held mostly unchanged, grain dealers said.
Farmers who were washed out of the fields due to rain around the region may book some sales of corn and soyabeans if the futures market rallies, the dealers said.
"I think everyone will wait until the Board opens," an Indiana dealer said. "With the overnight up, we have had a few phones calls already."
The overnight e-cbot trend for corn was flat to up 2-3/4 cents while soyabeans were mixed, ranging from 3-1/4 cents lower to 5 cents higher.
Processors and elevators were well stocked with soyabeans after heavy farmer selling earlier in the month. But corn sales have been slow, causing dealers to inch their bids up to try and generate farmer interest.
In export news, the US Agriculture Department said on Thursday export sales of soyabeans were 389,800 tonnes (old crop and new crop) in the most recent reporting week, beating market forecasts for 150,000 to 250,000 tonnes.
The soyabean export sales were 87 percent above the average of the last four weeks, USDA said.
Export sales of corn were 1.13 million tonnes (old crop and new crop), above estimates of 700,000 to 950,000 tonnes. Wheat export sales were 413,700 tonnes (old crop and new crop), beating market forecasts for 200,000 to 350,000 tonnes.
The better-than-expected export sales figures were expected to lend support to the futures market but farmers were not responding to them yet, an Illinois dealer said.
At the Chicago Board of Trade, soyabean futures were called to open 4 to 6 cents a bushel higher, boosted by strength in outside markets such as gold.
Corn futures were called 1 to 2 cents higher, also spurred by gains in the gold market, traders said.
Wheat futures were called 1/2 to 1 cent higher.

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