US CIF basis bids for corn and soyabeans held steady on Monday amid slow export demand and limited country movement of grain as farmers focused on spring planting, traders said. There is little export demand for soyabeans at the Gulf, but rising ocean freight has made US soyabeans shipped from the Pacific Northwest competitive with South America, traders said.
Brazilian and Argentine soyabeans travel greater distances to Asia than US soyabeans. As a result, rising ocean rates have a greater impact on the total cost of shipping soyabeans from South America. Ocean freight has hit record highs partly due to Chinese demand, and current rates are difficult to get with China on holiday until Tuesday.
Japanese traders are back in the market after a four-day holiday but will probably wait until later this week to make any additional purchases, traders said. Japan has already bought 50 percent of the soyabeans it needs for June shipment, traders said. Japan has bought at least 25 percent of the corn it needs for July-September shipment.
Rain continues to delay corn plantings in the western Midwest. Traders are expecting USDA to report corn plantings on Monday afternoon of between 40-50 percent, behind the 64 percent five-year average.
Hard red winter wheat basis bids held steady, but values had a weak tone amid little export demand and ahead of the spring harvest which will start in a few weeks, they said.
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