US Gulf corn basis offers were mostly higher on Tuesday amid fresh export demand and slow farmer selling, while November soyabeans were higher.
Hard and soft red winter wheat basis offers were higher amid tight supplies as much of the available barges and rail cars were being used to transport corn and soyabeans.
"Basis offers are higher due mainly to logistics," a trader said, adding that fresh export demand for wheat was thin.
Barge freight were mostly lower as slow grain moved reduced barge demand from shippers. Offers for this week at St. Louis were down 20 percentage points at 290 percent of tariff.
Offers on the Illinois River were down 10 points at 340 percent and the Lower Ohio River was down 25 points.
Corn basis values were mostly higher, supported by fresh export demand and slow farmer selling.
"There's pretty good demand at the Gulf," a trader said, adding that Japan was among the buyers.
November soyabean offers were higher amid the slow farmer selling. Traders were unable to confirm talk at the Chicago Board of Trade that China bought 2 cargoes of soyabeans.
"People are assuming that there were sales to China because of the rally," a trader said, referring to CBOT November soya futures rising 13 cents to end at $5.27-3/4 a bushel.
Another trader pegged the CBOT rally to short covering and strength in basis values in cash markets.
Traders said soyabeans for October shipment were traded at 53 cents a bushel premium the CBOT November in the CIF barge market, which supplies export elevators at the Gulf coast.
There were also trades at 52 cents over, they said, adding that October was bid 50 cents over and offered at 55 over. The traders said exporters were bidding aggressively to draw supplies so that they can fill export orders.
Traders said most Gulf export elevators had no capacity left to load vessels for October and first-half November shipment because of strong sales, especially of soyabeans and wheat, earlier in the season.
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