US Midwest corn and soyabean mostly steady

07 Jun, 2007

Spot basis bids for corn and soyabeans were mostly steady around the interior Midwest on Tuesday amid little selling interest from farmers, grain dealers said.
Although the interior basis was mostly steady, the corn market had a firm tone as dealers who were looking to boost supplies tried to spur a round of country movement.
At river locations, soyabean bids weakened due to limited demand in the export market. Buyers looked to South America for cheaper supplies, traders said. River bids for corn were flat. Farmers booked some light sales of soyabeans after a futures market rally pushed cash prices higher. Most soyabean sales were contracted for delivery after harvest, grain dealers said.
Cash prices for soyabeans were still below $8 per bushel, a key level for farmers, at most locations. Sales of corn, both on the cash market and for future delivery, were quiet. Most farmers had bullish expectations for corn prices and were unwilling to commit to any sales with prices at current levels.
Shipping costs fell on Midwest rivers as the slow pace of farmer selling left plenty of empty vessels available for shipping. Bids for barges fell 25 percentage points to 335 percent of tariff on the Illinois River. On the lower Ohio River, bids for barges fell to 230 percent of tariff from 240 percent of tariff on Monday.
Barges were bid at 270 percent of tariff on the Mississippi River at St. Louis, down from 275 percent of tariff on Monday. At the Chicago Board of Trade, July soyabean futures rose 12-1/2 cents, or 1.5 percent, to $8.28-1/4 per bushel, reaching new contract highs while following a rally in vegetable oils. July corn futures closed down 3-1/2 cents at $3.80-1/4 per bushel. CBOT July wheat gained 7 cents to close at $5.27-1/4 a bushel, following strength in soyaoil.

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