US Midwest corn and soyabeans steady

05 May, 2007

Spot basis bids for corn and soyabeans were mostly steady around the interior US Midwest on Thursday but soyabean bids fell along rivers due to weakness in the CIF market, grain dealers said. Country movement was light because many farmers were in the fields working on planting tasks that have been delayed due to wet conditions in the field.
Rain was in the forecast for much of the region so many farmers would be running planters in the field well into the night, an Illinois dealer said. Producers have been using the planting delays to empty out storage bins of corn and soyabeans they have been holding since last fall's harvest. New crop sales have been scarce because most farmers wanted to finish planting before they develop a marketing plan for this year's crops.
The US Agriculture Department on Thursday morning said export sales of corn were 655,300 tonnes (old crop and new crop combined) in the latest reporting week. Analysts were expecting sales between 800,000 and 1,100,000 tonnes. Export sales of soyabeans were 471,300 tonnes (old crop and new crop combined), above estimates for 250,000 to 350,000 tonnes.
Wheat export sales were 215,200 tonnes (old crop and new crop combined), below analyst expectations for 250,000 to 450,000 tonnes. Shipping costs were steady to slightly weaker on Midwest rivers. The slow farmer selling has left an ample supply of empty barges on the region's waterways.
Barge bids fell 5 percentage points to 175 percent of tariff on the lower Ohio River. On the Illinois River, barges were bid at 205 percent of tariff, in line with Wednesday's level. Bids also held steady, at 170 percent of tariff, on the Mississippi River at St. Louis.
At the Chicago Board of Trade, the May corn futures contract rose 7-3/4 cents to $3.79-3/4 per bushel on forecasts for rain that could slow down planting further. July corn futures rose 7-1/4 cents to $3.89-1/4 per bushel.
CBOT May soyabean futures fell 1/2 cent to $7.33-3/4 while July soyabean futures closed down 3/4 cent at $7.47-3/4 a bushel. CBOT May wheat futures rose 1-1/2 cents to $4.81 a bushel, following the moves in corn. CBOT July wheat futures gained 1 cent to $4.94-1/2 per bushel.

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