Export premiums for corn and soyabeans shipped from the US Gulf Coast were steady to lower on Thursday as prices for new-crop shipments eased in tandem with sinking CIF barge basis values, traders said. Higher Chicago Board of Trade futures on Thursday triggered active farmer sales of corn and soyabeans, which kept a lid on spot bids and pressured deferred values.
Nearby FOB offers remain underpinned by tight supplies due to flood-related barge shipping delays in the central Midwest. More rain across the central Midwest is keeping river levels well above flood stage on the Illinois and mid-Mississippi rivers. The high water could halt the flow of empty barges to Mississippi River elevators north of Louisiana, Missouri, and extend the flood-related shutdowns of many Illinois River elevators for several more days, a barge broker said.
The Mississippi River at St. Louis is forecast to crest at 37.3 feet early next week, according to the National Weather Service. Restrictions on tow sizes and minimum tow boat horsepower are already in place in the area. Corn and soyabean basis offers for June and July were ill-defined amid the barge shipping uncertainty. Export demand for US corn was routine. Ample global supplies have many buyers focusing on buying near term shipments instead of booking large forward purchases. US corn is not competitively priced for October and November shipments, traders said.
Taiwan's MFIG group bought 130,000 tonnes of Brazilian corn for September-October shipment. The tender sought corn from numerous origins. Wheat export premiums at the Gulf were unchanged on slow demand amid tough competition from low-cost exporters in Europe and the Black Sea region. FOB Gulf corn for July shipment was nominally priced around 80 cents over CBOT July futures, which closed 10 cents higher at $3.76-1/2 a bushel.
FOB soyabeans for July were nominally offered at 105 cents over CBOT July soyabean futures, which closed 18-1/2 cents higher at $10.00-1/4. US FOB SRW wheat offers for July held at 63 cents over CBOT July wheat, which closed 14 cents higher at $5.32. HRW June/July offers at the Texas Gulf held at 125 cents over July futures, which closed 10-3/4 cents higher at $5.35-1/4.
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