Cash corn, soybean buyers holding out
U.S. cash markets for corn and soybeans remain weaker than in recent weeks, as many buyers expect large harvests of each crop in coming months to reduce prices.
"For right now, anybody who needs grain isn't going to pay up to get it," said Tim Hannagan, analyst with Walsh Trading Co. in Chicago. "They feel they're going to be able to buy it cheaper" as harvest activity picks up, he said.
Until then, many buyers can either wait or go hand-to-mouth, buying just enough to cover their needs until new supplies hit the market, he said.
Changes in corn and soybean cash markets were mixed Monday morning, strengthening in some parts of the Farm Belt while weakening in others.
For soybeans, buyers of spot supplies on Monday morning in Havana, Ill., were paying $1.27 a bushel above the price of November futures, a premium 16 cents smaller than the previous market day.
Buyers of spot corn supplies in Kansas City, Mo., were paying 85 cents above the price of September futures, a premium that is down 15 cents on the day.
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(END) Dow Jones Newswires
August 05, 2013 14:10 ET (18:10 GMT)
DJ Corn, Soybean Buyers in U.S. Cash Markets Wait for Lower Prices->copyright