US Midwest corn and soya bids rise on rivers

23 May, 2006

Spot basis bids for corn and soyabeans rose along Midwest rivers on Monday as the cost of moving grain down waterways slipped for the first time in weeks, dealers said.
Cash bids were mostly unchanged at interior locations, where dealers were well supplied after heavy country movement in recent weeks.
Farmer selling was expected to be slow on Monday as traders were forecasting weakness in the futures market that was expected to erode cash prices.
"If the Board is lower, I doubt we will get very much," a Nebraska grain merchant said.
Most farmers had taken care of their immediate cash needs and were unlikely to sell unless prices rallied above levels seen in the past month.
River dealers were able to raise their bids slightly due to the break in barge freight on the Mississippi and Illinois rivers. Shipping costs rose along Midwest rivers in recent weeks as dealers sought barges to send recently purchased grain to the US Gulf.
Dry weather around the region was allowing farmers in parts of the Midwest to return to the fields to finish planting tasks that have been delayed by persistent rains.
The field work also was expected to contribute to the slow pace of selling on Monday.
The rainy weather has pushed corn and soyabean seeding toward the end of the prime planting season, or even beyond, shortening the growing period and potentially trimming crop yields. Corn growth has been stunted by the wet conditions in some areas.
At the Chicago Board of Trade, soyabean futures were called 4 cents to 6 cents per bushel lower. Declines in the gold and crude oil markets were expected to weigh on soyabean futures.

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