Farmers have remained on the sidelines ever since the release a week ago of the US Agriculture Department's monthly crop production report, which sent futures prices on a decline from which they have yet to recover. Many farmers remain bullish, at least in the short term, and are not planning to sell unless corn and soyabean prices rise.
Soyameal offers firmed in recent days in the western Midwest due to tight supplies and strong export demand. A dealer at a processor in Council Bluffs, Iowa, said they were relying on soyabean sales from commercial grain elevators to meet crushing needs. "As soon as we have a rally here, maybe a small one, we'll see some more commercial activity," the dealer said.
Bids for both crops fell on the Illinois River amid rising costs to ship the commodities to the US Gulf. Ice accumulation last week halted commercial barge traffic on the Mississippi River at a key point north of St. Louis - US Army Corps of Engineers. Soft red winter wheat bids rose by 5 cents per bushel in Toledo, Ohio.
Record-low SRW wheat plantings in the eastern US Midwest could create a bidding war during harvest later this year, dealers and crop experts said last week. A firm dollar, lower crude oil prices and good crop weather in South America were seen pressuring futures prices at the Chicago Board of Trade. CBOT soyabeans and corn were called to open 2 to 4 cents per bushel lower, while wheat was seen down 8 to 10 cents.