Soybean offers at the US Gulf Coast held steady on Monday despite a break in the CIF market, while corn was mostly firm underpinned by steady demand, export traders said. CIF soybean values dropped some 15 cents or more a bushel late Monday as the rally in Chicago Board of Trade markets ignited farm sales.
Soybean basis bids at a key interior market and benchmark for US grain values - Decatur, Illinois - were rolled to the CBOT May contract at +25 from March also quoted at +25. The CBOT soya market rallied to its highest levels since mid September, supported by a rain-delayed Brazilian harvest. CBOT March soya, which closed up 15-3/4 at $13.86-1/2 a bushel, is trading at 10-cent premium to May.
Additionally, at 65-mile stretch of the Mississippi River, the main artery in moving grain by barge to export terminals at the Gulf, had been closed near New Orleans since Saturday due to barge accident that caused an oil spill. The river reopened by Monday afternoon but the closure caused a backup, slowing shipments during a winter already plagued with logistic hang-ups. Corn export premiums held steady, with exporters paying a premium for corn coming in at 14.5 percent moisture, versus the standard 15 percent. Top US corn buyers are demanding lower moisture corn.
Exporters have struggled with high moisture corn this season after a wet 2013 harvest. Weekly US grain inspections were large for soyabeans at 1.27 million tonnes but slightly below last week. Wheat inspections came in at 427,239 tonnes and corn at 791,947 tonnes. Texas state crop report released late Monday showed winter wheat condition continued to decline. Wheat rated poor to very poor rose by 3 points to 47 percent. Soils continue to dry out.
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