US FOB Gulf corn basis offers were higher on Tuesday amid export demand and slow movement, while soyabeans were mostly steady, traders said. Barge freight for this week shipment rose for a second straight day on Midwest rivers as the Ohio River remained closed from Sunday night due to low water, and amid low waters on the lower Mississippi River south of St. Louis.
Freight bids rose 15 to 35 percentage points at St. Louis, the lower Ohio and Illinois rivers as the river conditions limited the number of empty vessels available to move grain.
A Minnesota river trader said vessel draft has been reduced by three inches to nine feet. He said the new draft would mean 1,700 bushels of corn less per barge, which can carry a minimum of 55,000 bushels.
Soft red winter wheat basis offers were higher in line with gains in CIF market were firm amid exporter demand. There was speculation of fresh export business, but some traders said the exporters could be buying to fill previous export orders.
"It's just pent up demand," a trader said. "There's also some business," he added.
Another trader said Mexico continued to seek wheat, supporting prices. He said September shipment CIF SRW wheat was traded at 48 cents a bushel premium the CBOT September.
Hard red winter wheat basis values in the track market were weaker, weighed by a lack of demand, traders said, adding that there were also adequate supplies of high protein wheat.
A trader said track bids eased after an exporter had completed buying enough supplies.
Traders said corn basis offers were higher, supported by gains in the CIF barge market. They said an exporter was an active buyer of corn in the CIF market. "He was pushing bids 2 cents (a bushel)," a trader said. Corn prices were also higher in adjustment to lower CBOT futures and slow movement. Prices were also supported by talk that CIF values were about 12 cents a bushel below delivery prices for CBOT August corn.
"CIF values are below delivery and freight is higher," a trader said, of the strengthening of CIF basis values.
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