FOB US Gulf grain basis offers were steady with a soft tone late Friday, reflecting a backing off of importer interest from recent weeks as South American values were more competitive with a ramp up in the harvest, traders said. FOB soyabean offers were unchanged for old-crop while new-crop had a weaker tone. Top buyer China is full and struggling with poor crush margins.
Market reports of recent Brazilian soyabean cancellations by China were tied to lower prices in South America. Some traders said there were rumours that one to two cargoes of Brazilian soyabeans might be headed to the United States - not uncommon talk in the market this time year. Razor-thin nearby soya supplies given this season's hefty export pace and strong crush kept nearby offers high.
CBOT May soyabeans fell nearly 70 cents on the week on demand worries to end at $13.88 1/2 a bushel on Friday. FOB Gulf corn offers were mostly steady but inquiries were limited as this month's jump in futures coupled with firmer basis values cooled demand, exporters said. Corn FOB values for July were slightly weaker as exporters tried to booked fresh deals.
Hard and soft red winter wheat basis values were steady. Pricey rail freight and concerns about winterkill as the US crop comes out of dormancy underpinned the market. HRW wheat remains attractive to importers, given the turmoil in the Ukraine and Canada's backlogged grain shipments. Kansas City May wheat ended 14-3/4 cents higher on Friday, rising 30 cents this week. CBOT May wheat closed 13-1/2 cents higher on Friday.
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