US FOB Gulf soyabean basis values for old-crop loading slots were marked down sharply again on Thursday night as the CIF barge market plummeted with Midwest processors dropping their bids, traders said.
"It's like the air is coming out of the bubble," said one CIF soyabean trader of the Midwest cash market that, until 48 hours ago, had been red-hot as processors scrambled for the dwindling old-crop soya stocks.
The cash market was jolted on Tuesday morning by surprise deliveries of 1.1 million bushels of soyabeans against the CBOT July contract by merchant Louis Dreyfus Corp Those were for delivery at Utica along the Illinois River.
CBOT July soyabeans touched $10.35 as recently as July 7. On Thursday, CBOT August soyabeans fell 29-3/4 cents to close at $7.51. Iowa processors reported cutting this spot bids for beans 45 to 60 cents after the close, basis August, as more farmers rushed to clean out remaining stocks before prices fell even further, Midwest dealers said.
Talk increased on Thursday that significant amounts of Delta soyabeans would be harvested early in August. The market also was relieved that USDA scotched a rumour on Wednesday that soyabean rust had been found in the United States.
"With the kind of market we've got, a rumour like that is the last thing we need," said one soyabean trader.
The Decatur, Illinois, spot bid for beans remained steady at $1.00 over CBOT August at the close. But the Chicago elevator bid fell back 40 cents to that level as well and Indiana processor bids also eased.
An exception was at the Burns Harbour terminal, which lifted its bid to 90 over CBOT August, up 15 cents.
On Thursday evening, July CIF soyabean barges were being bid at 80 over CBOT August, down 35 cents from midday, and offered at 90 over, down 60 cents. FH August CIF was bid 35 over August, unchanged, but offered at 50, down 30 cents. LH August barges were bid 30 under August and offered 10 over.
August FH CIF traded at 40 over and was rebid at 35 late.
The FOB soya offers also sank but remained at a swollen premium to the domestic market, which was expected to dominate new-crop demand from the first bushel out of the Delta. FH August FOB soya was offered at 210 over CBOT August and LH August loadings at 195 over August, down 40-45 cents.
CIF and FOB corn values stayed steady, balance between supply and demand and with the basis supported by the 4-cent drop in nearby CBOT prices. USDA weekly exports sales for the week ended July 8 were strong at 657,700 tonnes for old-crop.
Another 333,500 tonnes of corn was bought by South Korea last week, which also shipped 219,900 tonnes. But South Korea also cancelled 107,500 tonnes of new-crop commitments, with hopes pinned on China releasing more corn by year-end and also competition expected from cheap Ukrainian feed wheat.
HRW wheat track values eased as offers for July/August cars became more available. But quality issues cropped up as bidders demanded minimum falling numbers above 300 for HRW 11-percent protein number 1's but sellers offering no guarantees.
HRW CIF moved to a premium to rail with no stipulations on falling numbers on either side, brokers said. July track bids were at 55 over KCBT September and CIF at 57 over, 65 offered.
SRW wheat CIF values dropped sharply as moved picked up on harvest, adding to declines in CBOT futures. Egypt's GASC remained out of the market after the close even as CBOT dropped to 8-month lows and sank 11-3/4 cents, basis September.
However, FOB traders were content to let the futures erosion try to draw in some foreign interest and kept FOB offers for both hard and soft wheat steady. The domestic milling market was struggling to sort out quality issues with the SRW wheat crop as well, as reports of vomitoxin in Ohio and Michigan wheat surfaced more often amid harvest this week.
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