Spot basis bids for corn were steady to firm at locations around the US Midwest on Tuesday while soyabean bids were steady to weak, grain dealers said. Farmer selling of both commodities was light on Tuesday as a downturn in the futures market sent cash prices lower.
Slow country movement of corn in the past few weeks has forced dealers to tighten their bids to try and generate some interest from farmers. But most growers had bullish attitudes about corn prices so were unlikely to let go of any of their supplies at current price levels.
Additionally, dry weather around the eastern Corn Belt was making them reluctant to commit to any more sales for delivery after harvest. Farmers have been willing to let go of some soyabeans in the past few weeks as prices were around $8 per bushel at many locations.
The soyabean sales have provided farmers with enough money to handle their immediate cash flow needs and allowed them to hold out for higher prices on corn, dealers said. Shipping costs were steady to slightly weaker on Midwest rivers. Barges traded for between 325 percent and 330 percent of tariff on the Illinois River compared to 330 percent of tariff on Monday.
On the Mississippi River at St. Louis, bids for barges fell 10 percentage points to 260 percent of tariff. Bids held steady at 250 percent of tariff on the lower Ohio River, the same level as on Monday. At the Chicago Board of Trade, July corn futures closed 2-1/2 cents lower at $3.93-1/2 per bushel, setting back from strong gains on Monday.
CBOT July soyabeans fell 3-1/2 cents to $8.26-1/2 per bushel. CBOT July wheat rose 9 cents to close at $5.65 per bushel on follow-through strength from Monday's bullish US Agriculture Department supply and demand report.