Spot basis bids for corn and soyabeans fell at river locations around the US Midwest on Friday due to weakening export demand, grain dealers said.
"The futures continue to rally and the Gulf market gives every appearance that they do not need the corn very bad or the soyabeans very bad," a river dealer in Iowa said.
In the interior, cash bids for soyabeans fell in Iowa, where most dealers were well supplied after strong farmer selling earlier this month.
Soyabean bids were steady elsewhere but the basis had a weak tone as many dealers expected a strong futures market rally to push cash prices higher. Corn bids also were mostly steady.
Traders were predicting strong gains in the futures market after a US Agriculture Department report that forecast lower-than-expected ending stocks of corn, soyabeans and wheat for the new marketing year.
One dealer in Illinois said that her company was not buying any grain until after the market opens so that basis bids could be adjusted accordingly. Farmer selling of corn and soyabeans was relatively light early on Friday but dealers said many were waiting for the futures market to open. Sales were expected to pick up after the open if prices rise as expected.
"If this market will offer us a rally, which by the (looks) of the report I would say is possible, I think we will buy some grain," a dealer in northern Ohio said.
Many farmers were unable to get to their fields to plant because of rainy weather around the region, which could also contribute to a heavy pace of selling. Some farmers were already raising their target prices, expecting a big rally.
At the Chicago Board of Trade, corn futures were called 10 cents to 12 cents per bushel higher. Traders cited the USDA report that forecast better-than-expected ethanol usage for the predicted open.
Soybean futures were called 5 cents to 10 cents per bushel higher.
Wheat futures also were seen 5 cents to 10 cents per bushel higher.