Spot basis bids for corn were steady to weak on Monday amid expectations for a good crop at harvest time following favourable weather during the key pollination phase, grain dealers said. Soyabean bids were mostly steady to firm. Soybeans were starting to enter the critical pod-setting period and the size of the crop was still in doubt.
Farmer selling was slow on Monday. Most growers were on the sidelines waiting to see what direction the futures market was headed this week. A sharp downturn in futures prices during the month of July left cash prices for both commodities well below expectations.
Producers had booked sales of both corn and soyabeans when prices were higher earlier in the year so there was little pressure to sell. Most farmers had enough money from the earlier sales to handle their immediate cash-flow needs. "There is not much going on," an Indiana dealer said. "They are wondering why (soya)beans are $2 per bushel too cheap."
Many farmers have not even told grain dealers the price levels at which they would book any additional sales. Farmers were still bullish that prices could rebound before harvest but most did not expect a return to highs hit earlier this year, dealers said.
In overnight trading, the e-cbot trend for corn was up 3/4 cent per bushel to 2 cents per bushel while soyabeans were up 6 cents to 9-1/2 cents per bushel. Wheat futures were up 1/4 cent per bushel to down 3-1/2 cents per bushel in overnight electronic trade.
At the Chicago Board of Trade, soyabean futures were called up 7 to 10 cents per bushel on forecasts for hot and dry weather around the Midwest. CBOT corn was called 1 cent to 2 cents per bushel higher, supported by the soyabean market. Wheat futures also were expected to open 1 cent to 2 cents per bushel higher.