Basis bids for soyabeans shipped by barge to the US Gulf Coast fell on Monday despite rising barge freight costs, due to pressured from rising supplies amid the accelerating US harvest, traders said. Spot barge freight rates on Midwest rivers were steady to up 50 percentage points of tariff on Monday following a 100- to 125-point jump on Friday, according to industry data. Low water and lock delays have slowed navigation in some areas.
CIF soyabean barges loaded in September were bid 36 cents a bushel over Chicago Board of Trade November futures, down about 8 cents from late Friday, traders said. Some shippers at the Gulf still need high-quality soyabeans for blending with damaged beans on hand and are willing to pay premiums for spot shipments. Barges loaded north of Memphis arriving at the Gulf by Saturday were bid as high as 48 cents over futures on Monday, a trader said.
Soyabean export premiums also declined, following sinking CIF barge values, traders said. FOB basis offers for October and November soyabean loadings were around 58 cents a bushel over futures. CIF corn basis bids were steady to firm, lifted by higher freight rates. FOB export premiums were flat to lower on sluggish demand.
Bids for September CIF corn barges were 25 cents above the CBOT December futures contract. October barges traded at 27 and 28 cents over futures, up 1 to 2 cents from early bids. FOB corn offers for early October loadings were about 42 cents over futures. September soft red winter wheat barges were bid 40 cents over CBOT December futures. Spot FOB Gulf offers were 75 cents over December futures. CIF hard red winter wheat bids were 170 cents over the K.C. December contract for 12-percent protein grain. FOB offers for October vessels were 185 cents over futures.
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