US Midwest spot river basis bids for corn and soyabeans were firmer Wednesday while bids at interior locations stayed steady amid weak sales, dealers said. Farmers were not selling corn or soyabeans because they believed dry conditions in the eastern Midwest would soon start to reduce crop yields and move futures prices higher, dealers said.
"They're not doing anything as long as the forecast says something about hot and dry and little chance of rain," said an Ohio dealer.
Some farms in Ohio have not got any rain in 10 to 15 days, dealers said. Farmers feared another drought year like 1988 when soyabean prices rallied to almost $11 per bushel.
Meteorlogix weather service forecast temperatures in the Midwest would be above normal for the next week to 10 days, with highs from the mid- to upper-80s to mid-90s degrees Fahrenheit. There is a chance of rain in the western Midwest over the next two days, with scattered light showers for the eastern Midwest Friday or Saturday.
The US Midwest soft red winter wheat harvest continued in the southern portions of the belt this week. In southern Indiana and southern Illinois, early reports had the crop clean, showing little to no signs of disease.
Chicago Board of Trade soyabean futures were called to open 15 to 20 cents per bushel higher on crop fears amid forecasts for hot and dry weather, traders said. CBOT corn was called up 3 to 5 cents and wheat 3 to 4 cents higher.
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