FOB US Gulf corn basis offers were weaker late Thursday on quiet demand as importers turned to South America for cheaper supplies, traders said. While US corn out of the Gulf was uncompetitive with Brazil and Argentina, PNW corn values for export showed a better tone, they added. USDA weekly export sales showed a cancellation of 116,500 tonnes to China and 362,600 tonnes to unknown.
FOB corn offers for April-May were generally quoted 5 cents lower for April-May with a soft tone. CBOT May corn ended 3-1/2 cents lower. FOB Gulf soybean basis held steady as nearby supply remained tight given this season's big export sales driven by Chinese demand. Deferred soy offers were unchanged but the market had a softer tone as China turned quiet.
CBOT May soybeans closed 9-1/4 cents higher, rebounding some from this week's sell-off, triggered by talk of China cancelling Brazilian purchases and worries that the big importer would also be cancelling US cargoes. USDA reported disappointing weekly soybean export sales for old crop of 113,500 tonnes, which reflected cancellations of 81,800 tonnes for China and 96,000 tonnes to unknown. New-crop bookings were strong at 776,900 tonnes.
Overnight, Asian traders said China cancelled up to 600,000 tonnes of South American soybean as China struggles as crushers there struggle with low crushing margins. Hard red winter wheat FOB Texas Gulf basis offers for April to May rose 3-5 cents, reflecting high rail freight and concerns about the crop coming out of a harsh winter, exporters said. After this week's spike in US wheat futures, profit taking pushed KC wheat 11 cents lower. CBOT May wheat closed 10 cents down.
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