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US FOB Gulf soybean basis offers were mostly steady on Tuesday, supported by tight supplies, while corn were steady to higher, traders said. Exporters were not offering soy shipments through first-half October due to tight supplies. Traders said soybeans from the Southern harvest were heavy with moisture and damage from rains.
Some traders said the damage was between 12 to 15 percent, with moisture as high as 15 percent. Farmers faced the possibility of dockage of up to $1 a bushel. Export demand for soybeans was slow, with top buyer China having overbought from Brazil and Argentina. Traders said soybeans for September 1-10 shipment in the CIF market were bid at 95 cents a bushel over the CBOT November.
Exporters were confident of winning a slice of Iraq's tender to buy 50,000 tonnes of optional-origin wheat that closes on September 21. US soft red winter wheat prices were competitive with values in the Black Sea region. Egypt's General Authority for Supply Commodities (GASC) set a tender to buy 55,000 to 60,000 tonnes of wheat for shipment from October 11 to 20. FOB corn basis offers were higher for nearby positions amid slow farmer selling.

Copyright Reuters, 2008

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