Spot soyabean basis bids were firm along the rivers and mixed at interior locations in the US Midwest on Monday while corn bids were mostly steady amid lacklustre farmer sales, grain dealers said.
Soyabean basis bids continued to weaken in the western Midwest where several soyabean processors were taking downtime for seasonal maintenance before the harvest. Large supplies of old-crop soyabeans also pressured basis bids, dealers said.
Soyabean basis bids continued to firm in the eastern Midwest, where farmers were more reluctant to sell old-crop stocks because of a summer-long drought hurting the new crop.
Corn basis bids were mostly steady but with a weaker tone in the western Midwest where elevators and processors have ample carry-over supplies from last year's bumper crop and adequate rainfall has made farmers more willing to sell old-crop stocks. Several Iowa elevators on Friday were at capacity with corn because of railroad delays, dealers said.
Farmers were eyeing a cash price of $6.70 to $6.80 per bushel for old-crop soyabeans, down from $7 per bushel last week, dealers said.
"This late in the year, they're starting to realise time's running out," said an Iowa dealer.
Farmers will begin harvesting soyabeans next month in the Midwest and need to make space in their storage bins for the new crop.
Given current basis levels, the futures market at the Chicago Board of Trade would have to rally 30 to 40 cents for the cash price in many markets to reach $6.70 to $6.80.
Farmers were still looking for a cash price of $2.10 to $2.15 per bushel for corn, which would require about a 10- to 15-cent rally in CBOT corn.
Chicago Board of Trade soyabeans were called 7 to 10 cents per bushel higher because of forecasts for mostly dry and warm weather this week in the eastern Midwest. CBOT corn and CBOT wheat were called to open 2 to 4 cents per bushel higher.
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