CHICAGO: US FOB Gulf soybeans basis offers were steady to firm and futures edged higher on strong processor and exporter demand even as harvest progressed, traders said on Tuesday.
Corn and wheat basis values were steady with stronger futures reflecting domestic demand. Overseas competition for corn, but especially wheat, continues to restrain fresh buying. The US corn harvest is still less than half complete and two weeks behind normal, keeping interior basis bids firm.
Soybeans and the red-hot processor market, particularly for soymeal exports, continue to be the main feature.
Nov/Dec/Jan FOB soybean offers were all unchanged after the close, but February was 5 cents higher at 135 cents over CBOT March soybeans. November FOB beans were offered at 155 cents over CBOT November soybeans, which closed up 2 cents at $10.08 a bushel.
China's import program continues in high gear with sales of some 2.0 million tonnes over the past two weeks. No slowdown is seen by traders.
Corn FOB values for November were unchanged at 110 cents over CBOT December futures and December offers were 105 over futures. Q1 offers were also steady. CBOT December corn closed 1-1/2 cent up at $3.64-1/2, with rains slowing harvest activity in the eastern Corn Belt and giving the market a firm tone.
Wheat futures continued to rally this week on short-covering but cash markets remain in the doldrums, traders said. Abundant supplies overseas, especially in Europe and the Black Sea, overhang US markets except for traditional buyers. High domestic freight costs continue to prop up US prices and sparked reports of EU feed wheat imports into Atlantic ports. Monday's dreary export inspections underscored the market tone.
KCBT December HRW wheat futures closed 7-1/4 cents higher at $6.02 and Chicago SRW wheat jumped 8 cents at $5.30-3/4.
Basis offers for both HRW and SRW wheat were steady with Monday, traders said.
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