Spot basis bids for soyabeans were steady to firm around the US Midwest on Tuesday after a futures market drop pushed cash prices down sharply, grain dealers said. Cash bids for corn and wheat were mostly unchanged.
Sales were expected to be slow on Tuesday because target prices were well below most farmers' expectations after the downturn in futures. "It just made them even madder, and they're going to hold it even tighter," an Indiana dealer said.
Many farmers hoped the market would bounce back due to technical buying by mutual funds, despite forecasts for good growing weather that would tend to depress prices. Dealers predicted farmers could only afford to wait a few weeks longer before having to clear storage bins in anticipation of this year's harvest.
Sales have been slow for the past few weeks, but dealers have raised basis bids for corn, soyabeans, and wheat only slightly because they expect farmers to sell in the next month no matter where prices are.
The US Agriculture Department said on Monday afternoon that 97 percent of intended soyabean acreage had been planted as of June 18, up from 96 percent in June 2005 and above the five-year average of 94 percent.
Soybean emergence was pegged at 92 percent, slightly above last year's figure of 91 percent. The five-year average is 86 percent. Soybeans were rated 67 percent good to excellent. This year's corn crop was rated 68 percent good to excellent, in line with June 2005.
The winter wheat crop was 29 percent good to excellent, down from 50 percent last year, USDA said. Winter wheat was 38 percent harvested, well ahead of last year's pace and the five-year average. Spring wheat was rated 60 percent good to excellent, with 21 percent of the crop headed.
At the Chicago Board of Trade, soyabean futures were called 1 cent to 2 cents per bushel higher on a mild short-covering bounce following Monday's sharp drop.
CBOT corn futures were expected to open 1/2 cent to 1 cent per bushel higher, also on a short-covering bounce. Wheat futures were seen 2 cents to 3 cents per bushel higher, supported by harvest delays in the Plains.