US CIF Gulf corn basis values were mostly steady Monday, while soyabeans were firm as farmers remained reluctant sellers of grain, traders said. The slow grain movement in turn was weighing on barge freight rates, which continued to edge lower from last week. Traders said freight offers have declined almost 100 percentage points on the lower Ohio River amid a lack of demand from shippers and ample supplies of empty vessels.
"It's extremely quiet," a river trader said, referring to the slow farmer selling.
Movement of corn, soyabeans and wheat have dried up after increasing significantly in the first two weeks of this month fuelled by sharp rallies in CBOT futures.
But funds, which have been behind those gains, have been selling futures amid the strengthening dollar - which rose to a 4-1/2 month high against the yen on Monday - taking prices lower and putting the brakes on movement.
Traders said they were expecting soyabean basis values to be pressured by a lack of fresh export demand, which has been largely drifting to cheaper supplies in Brazil and Argentina.
But the traders said shipments from the US Pacific Northwest were competitive due to low ocean freight rates, and were hoping it would help push sales.
Taiwan will tender on Tuesday to buy 40,000 to 60,000 tonnes of US or Brazilian soyabeans for April/May shipment. There is an option for the cargo to be shipped from the PNW.
Corn basis values were mostly steady, but traders said declining barge freight rates were keeping a lid on prices.
Export demand was steady, but traders said there was competition from China and Argentina.
South Korea bought 52,500 tonnes of optional origin corn for July 25 arrival. The cargo was priced at $139.80 per tonne cost-and-freight if sourced from China and $146.80 per tonne C&F if supplies are from the United States or South America.
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