Basis bids for corn, soyabeans and wheat shipped by barge to the US Gulf Coast were flat to weaker on Monday on easing freight costs and adequate supplies, traders said. FOB export premiums softened along with the weak CIF basis. Widespread weekend rains have raised water levels on the lower Ohio and Mississippi rivers. As a result, shippers are able to load barges with more grain, which limited demand for additional empty barges, freight brokers said.
Spot barge freight rates on Midwest rivers were steady to down 50 percentage points of tariff on Monday, continuing a slide from near-record highs two weeks ago. The Port of New Orleans reopened after a brief closure due to Hurricane Nate, which made landfall in Mississippi over the weekend.
Soyabean exporters are awaiting renewed demand from China, which still needs November and December shipments. Markets in the world's top soya importing country were closed last week for a national holiday. Egypt's GASC is seeking cargoes of wheat via a snap tender for late November shipment. Traders do not expect any US wheat to be offered in the tender, with Black Sea region wheat likely to be the cheapest.
CIF soyabean barges loaded in the first half of October were bid at 26 cents a bushel over Chicago Board of Trade November. FOB basis offers for late October soyabean loadings were around 53 cents a bushel over futures. Bids for October corn barges were 25 cents above the CBOT December futures contract, down from trades earlier in the day at 30 and 31 cents over futures. FOB corn offers for late October loadings were about 53 cents over futures. October soft red winter wheat barges were bid 55 cents over CBOT December futures. Spot FOB Gulf offers were 85 cents over December futures.
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