Spot basis bids for corn were mostly steady to firm around the US Midwest on Monday due to low supplies at processors and elevators, while soyabean and wheat bids were mixed, grain dealers said. Farmer selling was expected to be light on Monday as weakness in overnight futures trading pointed to an erosion in cash prices.
"The market is down pretty bad, so the guys are waiting," a dealer in southern Ohio said. Overnight e-cbot corn was down 2 cents to 4-3/4 cents per bushel, with soyabeans falling 6 cents to 8-1/4 cents. Wheat futures were unchanged to 2-3/4 cents per bushel lower in overnight electronic trading. Dealers said farmers were looking for cash prices for soyabeans of at least $6 per bushel. Target prices for corn were around $2.40 per bushel.
Most farmers had enough cash on hand to cover immediate expenses due to heavy selling of corn and wheat in early May. Dealers were unwilling to bid aggressively for soyabeans because of low demand for soyameal and soyaoil. Some processors were shut for seasonal maintenance, also limiting the demand for soyabeans.
Demand for wheat was low at processors, but some elevators were looking to stock up due to an improving export market. Cash bids for wheat rose by as much as 10 cents per bushel.
Egypt's main wheat importer bought 230,000 tonnes of US and Canadian wheat on Saturday for shipment between July 16 and 31, according to a company official.
At the Chicago Board of trade, corn futures were expected to open 2 cents to 4 cents per bushel lower on forecasts for cooler weather. Crop-friendly rainfall over the weekend also was seen as bearish for corn futures.
Chicago Board of Trade soyabean futures were called 5 cents to 10 cents per bushel lower, also due to the rain over the weekend. Wheat futures were seen 1 cent to 2 cents per bushel lower on spillover pressure from corn and soyabeans.