Spot basis bids for US Midwest corn were steady to firm on Monday amid a lack of farmer selling and falling futures prices, while soybean basis was mixed and wheat basis was flat, grain merchants said. Declining corn and soybean futures on the Chicago Board of Trade on Monday dragged cash prices further below farmers' target selling prices of around $4 a bushel for corn and about $10 a bushel for soybeans, dealers said.
Producers remain fairly confident that prices will rebound despite continued worries about slowing demand due to the economic recession and improved crop weather in Argentina, the world's no. 3 soy producer and no. 2 corn exporter.
Rains should start Monday night and continue through Thursday in much of Argentina's Pampas agricultural region, a weather expert forecast. Cloudy weather, lower temperatures and spotty rains gave some relief over the last few days, but more precipitation is needed.
Barge freight eased on Monday, which helped underpin basis bids at some Midwest river locations, river dealers said. Spot barge bids were 475 percent of tariff on the Illinois River, 325 percent on the lower Ohio River, and 350 percent n the Mississippi River at St. Louis, all down 50 percentage points from Friday. Improved crop weather in Argentina and concerns about demand amid a deepening recession weighed on CBOT corn and soybeans on Monday, along with lower crude oil and a weaker US dollar, traders said.
CBOT March soybeans ended down 20-1/2 cents, or 2.1 percent, at $9.59-1/2 a bushel. CBOT March corn ended down 8-1/2 cents, or 2.2 percent, at $3.70-1/2 a bushel. CBOT wheat was pressured by worries about demand in a tough economic climate, but finished above session lows amid concern about crop conditions in the overly dry southern US Plains. March wheat ended down 4-1/4 cents at $5.63-3/4 a bushel.