US FOB Gulf soyabean basis slightly firmer

US FOB Gulf soyabean basis values for January-February loadings were slightly firmer after the close on Monday as futures dove after USDA raised its projections of US and Brazilian production as well as global end stocks, traders said. Corn basis offers were steady as futures edged higher after USDA cut its 2014 US corn yield and production forecasts. US wheat basis offers were mixed after futures dropped 8 to 10 cents as USDA raised its US end stocks outlook.
FOB Gulf soyabeans for January were offered 4 cents higher at 90 cents over CBOT March, which closed down 36-1/4 cents at $10.16 a bushel. The market ignored US strong export inspections of 1.84 million tonnes in the week ended January 8, half of which was China continuing to push out its previous purchases. Traders noted Russia loaded another 30,400 tonnes of US soyabeans last week.
Soyabean futures fell sharply as USDA raised its record US production estimate to 3.97 billion bushels as well as its average yield number. USDA also increased its world soyabean stocks forecast, reflecting larger crops including the Brazilian soyabean crop - up 1.5 million tonnes to a record 95.5 million. Corn basis offers January through May were all unchanged with January offered at 61 cents over CBOT March, which closed up 1-3/4 cent $4.02.
USDA cut 2.4 bushels per acre off its national corn yield average, dropping production by 191 million bushels. However, corn exports remain routine with only 553,000 inspected for export last week. China loaded 1,444 tonnes from interior points, however. Wheat exports also remain depressed, with only 238,153 tonnes loaded in the week ended January 8. Just a little more than 7,000 tonnes was SRW wheat. For the year, wheat exports are running two-thirds of last year's pace weighed down by abundant global supplies and a strong dollar.
FOB Gulf SRW for January-February were offered 5 cents lower at 130 cents over CBOT March, which closed down 8-1/4 at $5.55-1/2. HRW FOB wheat at the Texas Gulf was offered 5 cents higher for January through March at 130 cents over KCBT March , which closed down 10 cents at $5.90-1/2. USDA raised global wheat supplies by 1.7 million tonnes from last month with production at a record high. US wheat end stocks were raised by 33 million bushels.