US FOB Gulf corn and soyabean prices held mostly steady on Monday, supported by slow farmer selling, traders said. Extreme heat in the US Midwest have farmers holding onto their remaining old-crop corn and soyabeans in hope that the weather will drive prices higher.
CBOT corn and soyabean futures rose on Monday on worries that hot weather could hamper the ear-filling stage of the corn crop or the pod-setting stage for soyabeans. Corn is past its most critical development period, but soyabeans are in a stage that greatly influences yields.
USDA reported late Monday that 53 percent of the US soyabean crop was rated good to excellent, compared with 54 percent a week ago and 54 percent last year. USDA rated 56 percent of the corn crop in good to excellent condition, compared with 59 percent a week ago and 53 percent a year ago. Export demand for US corn remains steady due to a lack of competition in the market.
Supplies of corn are tight at the Gulf with no offers to sell corn for shipment in the first half of August, traders said. Export premiums for last half August shipment climbed to 55 cents a bushel premium to CBOT September, up from 53 cents premium on Friday, traders said. "The pipeline is trying to get recharged for September shipment," said a corn trader.
Soyabean export premiums held steady, supported by a lack of country movement and a pick-up in export demand for soyabeans shipped in September and beyond. "Business is starting to show its face a little bit," said a soyabean trader. "There's interest out of China."
Buyers in both Taiwan and South Korea were expected to retender sometime this week to buy soyabeans after passing due to high prices. Hard red winter wheat export premiums held steady but nearby soft red winter wheat basis offers retreated after a rally in Chicago wheat futures.
Farmers and elevators were selling little hard wheat, hoping that prices will rise above 90 cents a bushel premium to KCBT September, traders said. Export premiums for August/September shipment are currently 75/78 cents premium.
Hard wheat supplies are tight after a winter drought slashed yields and traders are eyeing a recent tender by Iraq to buy up to 150,000 tonnes. Iraq does not always buy wheat after issuing a tender. When it does make a purchase, it is usually several weeks after companies submit their bids.