Spot basis bids for corn were steady to weak around the interior US Midwest on Thursday due to seasonal harvest pressure while soyabeans held steady, grain dealers said. Bids for both corn and soyabeans rose at river locations as shipping costs eased, leaving grain dealers with more money to offer farmers for grain.
Solid export demand for corn also contributed to the uptick in river bids for corn. Around the interior corn bids fell by as much as 10 cents per bushel as farmers began delivering corn from what is expected to be a record harvest. Dealers were unwilling to pay high prices for corn because they expect the market will be flooded with supplies in the coming weeks.
Farmer selling of both corn and soyabeans was slow. Most farmers were still bullish about cash prices because of rallies during harvest last fall. A rally in wheat prices during the past few weeks also bolstered their expectations for higher cash prices in the coming weeks.
"They do not care about prices (right now)," a northern Ohio dealer said. "Last fall, it rallied into harvest and wheat rallied into harvest, so why should they contract anything else (now)?" Shipping costs eased on Midwest rivers after jumping sharply earlier in the week.
Barges were bid at 700 percent of tariff on the Mississippi River at St. Louis, down from 900 percent of tariff on Wednesday. On the Illinois River, bids for barges fell to 650 percent of tariff from 775 percent of tariff. Bids for barges fell 75 percentage points to 700 percent of tariff on the lower Ohio River.
At the Chicago Board of Trade, September soyabean futures fell 11 cents to $8.78 per bushel. The November contract dropped 10-1/2 cents to $8.92-1/2 per bushel.
CBOT September corn futures contract closed down 5-1/2 cents at $3.23-1/4 per bushel while December corn futures fell 6-1/2 cents to $3.39-1/4 on a profit-taking setback. September wheat futures fell 26-1/2 cents, a 3.2 percent drop, to close at $8.16 per bushel, following sharp declines in European markets.
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