Corn spot basis bids eased at rail terminals around the US Midwest on Tuesday while bids for corn and soyabeans held mostly steady elsewhere in the region as futures drifted lower and farmers largely delayed sales, grain merchants said. Many farmers remain bullish and are willing to wait to see if corn and soyabean futures climb after falling two days in a row before they resume sales of either commodity.
Farmers continue to deliver both crops to satisfy contracts sold last year. "Basis is a little weaker due to the heavy contract deliveries," said a corn rail broker in the eastern Midwest. However, corn prices remain too high to spur much end user demand, said a corn rail broker in the southern US Plains. "At this point, they've seen a couple of down days and they would like to see more of that (before buying)," the broker said.
CBOT corn and soyabean futures eased Tuesday as traders took profits after contracts for both crops hit 29-month highs in recent days. Many growers may delay sales until after next week's USDA supply and demand report but some have already turned bearish and started to sell supplies from storage, said a dealer at a soyabean processor in Kansas City.
Most processors, elevators, ethanol plants and river terminals are well supplied and not bidding aggressively. Soft red winter wheat bids rose by 4 cents in northern Illinois and held steady elsewhere in slow trading. Barge freight eased on Midwest rivers even as loadings slowed at the US Gulf, reducing the amount of empties on the waterways.