Spot basis bids for soyabeans eased at processors and elevators in the western part of the US Midwest on Monday while corn held steady in that area, grain dealers said. But corn bids had a firm tone east of the Mississippi River as dry conditions threatened to damage the corn crop, dealers said. Soybean bids held steady in the East.
Farmer selling of both commodities was slow on Monday morning. Growers in the western part of the region were waiting for an expected rally in the futures market to push cash prices higher before they committed to any new sales, an Iowa dealer said.
But farmers in the east would likely be unwilling to sell no matter how much prices rise after the futures market opens, a dealer in southern Ohio said. The hot and dry weather has farmers worried that they will not be able to deliver enough grain to processors and elevators after harvest so they were reluctant to book new sales.
"Until they actually see rain, I do not think they will sell much," an Illinois dealer said. Scattered thunderstorms during the weekend helped some farmers but most growers in the eastern part of the region still needed rain. In overnight trading, the e-cbot trend for corn was up 1-1/4 cents to 7-1/2 cents per bushel while soyabeans were up 7 cents to 15-1/2 cents per bushel. Wheat futures were down 3-1/4 cents to up 1 cent per bushel in e-cbot trading.
At the Chicago Board of Trade, soyabean futures were expected to open 10 cents to 13 cents per bushel higher due to weather-related concerns. Corn futures were called 5 to 7 cents per bushel higher, also on worries about hot and dry weather in the eastern Corn Belt. Wheat futures were seen 2 to 3 cents per bushel lower on a profit-taking setback.