US FOB Gulf HRW wheat basis offers were unchanged with slightly lower futures on Friday as traders monitored the progress of Saudi Arabia's negotiations in its tender for 660,000 tonnes of 12.5 percent protein wheat announced Thursday. Soyabeans and corn offers also stayed steady after a sharp drop in the Brazilian real cheapened new-crop corn and soyabeans and pressured Chicago futures during the day, traders said.
FOB HRW wheat at the Texas Gulf for February and March shipment was unchanged at 135 cents over KCBT March, which closed 3-3/4 cents lower at $5.40-1/4 a bushel. April and May was offered at 135 cents over May futures. The HRW basis had firmed 5 cents on Thursday amid the Saudi tender which seeks cargoes of 55,000 tonnes for April-May shipments. Traders did not expect US hard wheat to be competitive with German hard wheat, a likely competitor, given the weak euro and reduced freight compared to America. Traders were unsure if the visit by President Obama and the US delegation to meet new Saudi King Salman would have any affect on Saudi buyers. US SRW FOB Gulf offers were 5 cents lower on Friday, with February-March offers at 125 cents over CBOT March, which closed 5 cents down at $5.02-3/4.
FOB Gulf soyabeans for February were offered down 1 cent at 95 cents over CBOT March, which closed 7-1/4 cents lower at $9.61. FOB traders and the futures market were jolted on Friday by the sharp drop in the Brazilian real when the Brazilian finance minister suggested that the government would not actively support the currency. The drop of more than 2 percent for the real instantly made cheap new-crop Brazilian soyabean and corn even cheaper to world buyers, including dominate buyer China. China has been transitioning its soyabean buying program away from the US to South America. There were no China soyabean cancellations announced by USDA on Friday.
FOB Gulf corn for February was offered at 80 cents over CBOT March, which closed 1-1/2 cents lower at $3.70. Corn bookings have picked up this month as some new buying as emerged despite the strong US dollar that has kept US exports only at par with last year despite the record 2014 crop.
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