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US FOB Gulf corn basis offers weakened on Wednesday following declines in the CIF barge market, while soyabeans and wheat held steady, traders said. CIF values came under pressure from a rally in corn futures that sparked farmer selling and more grain movement from recent declines in barge freight.
CIF corn for November shipment traded at 58 cents a bushel premium to CBOT December and then traded at 56 cents over. On Monday, November corn traded for as much as 60 cents premium.
Traders were awaiting the results of a tender by Israeli buyers for 56,000 tonnes of US corn for February/March shipment. In exports, South Korea importers failed to buy 110,000 tonnes of corn. Taiwan Sugar passed on a tender to buy up to 29,000 tonnes of US corn and 16,000 tonnes of US soyabeans but was expected to retender on Friday.
Since its last purchase on September 20, corn prices have risen 13 percent and soyabeans 7 percent. Taisugar passed on corn offered at $322-$324 per tonne, cost and freight, compared with $287.02 in the September tender. The cheapest soyabeans were $527-$531, compared with $493.10 in September.

Copyright Reuters, 2007

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