US FOB corn and soyabean basis offers were mostly lower on Wednesday amid ample supplies and as high ocean freight kept a lid on demand, dealers said.
"Farmer selling was historic on Monday, there was more on Tuesday and by comparison it was less today, but amounts were still pretty good," a dealer said. "Basis has been hammered."
Another dealer said corn basis values in the CIF barge market have dropped about 15 cents from a December traded high of 40 cents a bushel over the CBOT January.
On Wednesday, January CIF corn was bid at 24 cents a bushel over, and offered at 25 cents over. Last-half January CIF soya was bid 31 cents over and offered at 36 over.
"Even though the basis has fallen sharply, the C&F (cost and freight) price is still higher because of high ocean freight," the dealer said. "Freight went up $4-$5 this week."
Freight from the US Gulf to Japan was quoted at $63-$64 a tonne. That compared with $28 a year ago.
Soybean dealers said export demand was thin due to a combination of high prices and soaring freight rates. One dealer said top buyer China had likely begun its shift to cheaper South American supplies.
Brazil and Argentina begin their export shipments in earnest from March, narrowing the US export window.
USDA said on Wednesday China delayed the delivery period for 404,000 tonnes of US soyabeans from the current "old crop" year to the 2004/05 season beginning September 1.
South Korea's CJ Corp bought 52,500 tonnes of US soya at a tender for March shipment. The price was quoted at 41 cents a bushel over the CBOT May contract on a FOB basis.
A dealer reported farmer selling of new-crop wheat that would be harvested from June. "There's been some new-crop pricing with the rallies earlier this week," he said.
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