Spot basis bids for corn and soyabeans were mostly steady to lower on Tuesday as buyers retreated following a slump in futures sparked by forecasts for improved crop weather in the Midwest, dealers said. Grain movement ground to a halt following the sharp drops in CBoT corn, soyabean and wheat futures.
"Farmers are going to wait and see what happens in overnight (CBoT) trading before deciding what to do next," an Ohio dealer said. There could be more bad news in store for CBoT corn in overnight trading as option trades pointed to the electronic market opening 4 to 6 cents per bushel lower.
A dealer in Nebraska said farmers were waiting to see if the rains forecast for this week materialise. "If the rains don't come as forecast, they'll get bullish again." A shut-down in farmer selling helped to lift soyabean basis values in Des Moine, Iowa, by 15 cents a bushel in an indication of strong demand. But in Sioux City, soyabean bids dropped 5 cents.
Forecasts for improved crop weather, especially in the eastern Corn Belt, tumbled corn and soyabean futures at the Chicago Board of Trade. July corn futures fell by the daily trading limit of 20 cents to $3.96 per bushel.
CBoT July soyabeans fell 26-1/4 cents to $8.29 per bushel. Improved harvest weather in the Plains pressured wheat futures, with CBoT July wheat falling 20 cents to $5.81. On Monday, the US Agriculture Department said the US corn crop was rated 70 percent good to excellent, down from 77 percent good to excellent last week. Soybeans were rated 65 percent good to excellent, down 5 percentage points.
Barge freight bids for this week were a touch higher at St. Louis and on the Illinois River, traders said. On the Mississippi River at St. Louis, bids for barges rose 10 percentage points to 310 percent of tariff. Bids on the Illinois River firmed 10 points to 350 percent of tariff.
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