Spot basis bids for soyabeans dropped at processors and elevators around the US Midwest on Thursday as dealers did not want to raise the cash prices they were offering farmers following a futures market rally. Corn bids held steady around the interior, but fell at river locations as exporters were well-stocked with supplies, traders said.
Dealers reported some light movement of soyabeans. Most farmers who did sell were locking in prices of around $9 per bushel for delivery after harvest. But farmers worried about the condition of their crops were not selling because they think prices will rise in the coming weeks.
"Until we got some rain, everybody has got enough sold," a northern Ohio dealer said. Farmers in Iowa were the heaviest sellers on Thursday, after some rain showers in the state bolstered expectations for a good harvest.
In export news, the US Agriculture Department said export sales of soyabeans were 184,000 tonnes (old and new crop) in the latest reporting week. Analysts had been expecting soyabean export sales between 150,000 and 250,000 tonnes.
Corn export sales were 1.50 million tonnes (old and new crop), beating forecasts for 700,000 tonnes to 900,000 tonnes. Export sales of wheat were 1.18 million tonnes (old crop), above estimates for 700,000 tonnes to 800,000 tonnes.
Barge freight was steady to firm on rivers around the region on Thursday. Barges were bid at 390 percent of tariff on the Illinois River, up from 375 percent of tariff on Wednesday. On the Mississippi River at St. Louis, bids for barges rose 15 percentage points to 340 percent of tariff.
Barges were bid at 300 percent of tariff on the lower Ohio River, the same level as on Wednesday. At the Chicago Board of Trade, July soyabean futures rose 19 cents, or 2.1 percent, to $9.10 per bushel and August closed 18-1/2 cents higher at $9.14-1/2 per bushel.
Traders said the soyabean market was supported by worries related to forecasts for hot weather returning to the Midwest next week. CBoT July corn rose 8 cents to $3.44 per bushel and September gained 8-1/2 cents to $3.51-1/2 per bushel, also on worries about hot weather stressing crops. July wheat rose 1/2 cent to $6.11-1/2 per bushel while September wheat eased 1/2 cent to $6.21-1/2 per bushel.