Cash basis bids for corn and soyabeans were mostly steady to lower across the US Midwest on Tuesday, pressured by a spike in farmer sales tied to a rally to multi-month highs in futures for the commodities, grain merchants said. Farmers have sold large amounts of the crops, especially of corn, so far this week with futures rising to the highest levels since before last autumn's harvest.
The increased farmer sales come as export demand slowed seasonally amid an accelerating harvest in South America, where shippers are offering cheaper supplies to global importers. The reduced export demand for US supplies decreased competition at interior processors and elevators, further weighing on the basis. But extremely tight supplies of US soyabeans capped declines in bids for the beans, with the basis jumping 10 cents per bushel at a processor in Lafayette, Indiana. Barge freight eased on Midwest rivers with the growing supply of empty vessels pressuring shipping costs for the third straight week.