Grains were mixed overnight with soybeans and wheat showing modest 1-cent gains, while new-crop Dec corn was off 3 cents a bushel.
In wheat, Japan’s Ministry of Agriculture is seeking to buy 178,212 MT of food wheat from the United States, Canada and Australia via a regular tender closing on Aug. 1. The tender included U.S. western white wheat for the first time since the U.S. Agriculture Department confirmed in late May that an unapproved strain of genetically modified wheat was found growing in Oregon. Egypt’s GASC wheat buying agency announced on Tuesday that they bought wheat from Ukraine and Romania.
For corn and beans, the markets continue to be pressured by good weather prospects in the coming weeks. Rain showers stretching from Nebraska to northwest Missouri are forecast for late this week and the weekend, boosting moisture in some areas stressed by dry soil during July. The 12-14 day forecast looks much wetter and that takes out much of the weather risk around beans. As a result, Nov soybeans futures are struggling to hold above $12 a bushel.
In the cash market, basis levels continue to be volatile with some buyers moving basis higher following last week’s collapse. While the basis slide of over a $1 a bushel was likely overdone, it seems doubtful that basis levels will approach their highs as buyers try to entice some farmer sales before new-crop deliveries.