US FOB Gulf corn and soyabean basis offers held steady on Tuesday, although record-high ocean freight continues to cool fresh export sales, traders said. Hard and soft red winter wheat values held steady but futures prices falling to a six-week low failed to spark fresh export demand.
CBOT wheat has fallen about 15 percent from a historic high of $9.66-1/2 per bushel hit in the March contract on September 28, with some traders expecting prices to decline even further. Turkey's state grain board passed on a tender for 280,000 tonnes of soft wheat and 50,000 tonnes of durum on Monday because prices were said to be too high and it sees a downward trend in prices.
The crop in Argentina, which ranks among the world's top five wheat exporters, is developing well after much-needed rains in recent weeks boosted production prospects. Both Morocco and Pakistan are set to hold wheat tenders this week, with the business most likely going to Europe or Russia.
Taiwan's Flour Mills Association has retendered for 42,350 tonnes of US wheat for shipment from the Pacific Northwest for December shipment after passing on part of a tender last week due to high prices.
The discovery of the toxic mold aflatoxin in two US counties was expected to have little impact on corn exports at the Gulf. The corn in Iowa and South Dakota would more likely be shipped to the Pacific Northwest or be consumed domestically, traders said.
Soyabean export premiums held steady, although basis values continued to weaken in the CIF barge market, which supplies export elevators. CIF soyabeans for October shipment traded at 18 cents a bushel premium to CBOT November on Tuesday, down from trades last week of 25 cents over and as much as 40 cents over in early October.
High ocean freight has shut down soyabean exports at the Gulf, although sales continue to be made for shipment from the Pacific Northwest. Tenders were limited to Taiwan seeking up to 60,000 tonnes of US or South American soyabeans for November/December shipment. Taiwan was expected to buy US soyabeans, which are the cheapest on a delivered basis right now, traders said.
Comments
Comments are closed.