CHICAGO: Cash basis bids for soybeans fell sharply on Wednesday at US Midwest processing plants in the early phases of the harvest as farmers delivered truckloads of fresh supplies, dealers said.
Bids at some processors in Iowa and Indiana were reaching the lowest levels in months, reflecting the buildup in supplies of what is expected to be a record-large US soybean harvest. The basis at a processor in Cedar Rapids, Iowa, has decreased by 35 cents per bushel so far this week.
Soy bids saw smaller declines at river terminals around the region as demand from exporters at the US Gulf Coast remained robust.
Shipping costs on Midwest rivers jumped by as much as 50 percentage points of tariff amid strong demand for empty barges to haul soybeans to the Gulf, a barge source said late on Tuesday.
Corn spot basis bids were steady to sharply lower, also pressured by early harvest activity. Ample existing corn supplies weighed on bids before widespread corn harvesting gets going in the weeks to come.
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