Spot basis bids for soyabeans fell at locations around the US Midwest on Monday following a rally in the futures market that pushed cash prices sharply higher, grain dealers said. Cash bids for corn were mostly unchanged as most dealers think there will be a large supply at harvest time.
A US Agriculture Department report issued Friday showed this year's corn acreage was greater than expected. But soyabean acreage came in below forecasts, which sparked the rally.
A few farmers that needed cash for short-term expenses were booking light sales of old crop soyabeans Monday morning to lock in some profits, dealers in Indiana and Ohio said. But most growers were holding out for higher prices. Farmers were still hoping that corn prices could rally before harvest due to demand from the ethanol market.
"They still think it's going to go higher," an Illinois dealer said. "No one wants to let go of anything." Dealers continued to roll their soyabean basis bids to the Chicago Board of Trade August futures contract from the July contract. They also rolled their corn bids to the September contract from the July contract. A dealer in Council Bluffs, Iowa, rolled the soyabean bid to the November futures contract from the July contract.
In overnight trading, the e-cbot trend for corn was up 1-1/4 to 4 cents per bushel while soyabeans were up 9-3/4 to 15-1/4 cents and wheat was unchanged to 18-1/2 cents higher. At the Chicago Board of Trade, soyabean futures were called to open up 10 to 15 cents on follow-through from the acreage report.