US FOB Gulf soyabean offers softened again on Tuesday with a sharp rally in futures while corn and wheat FOB offers were mostly unchanged, traders said. CBOT May and July soyabeans set new contract highs for the second straight day on worries about tight old-crop supplies. May touched $14.90-1/2 before closing 20-1/2 cents/bushel higher at $14.84-1/2.
Traders noted interior soyabean movement after Tuesday's rally but that was not enough to weaken FOB soyabeans as much as Monday when nearby April-May offers fell 5-10 cents after the close, although new-crop eased a penny on Tuesday. The futures rally comes as US export demand seasonally slows as freshly harvested South American crops move into marketing channels.
Gulf CIF soyabean slipped early on Tuesday but steadied by the afternoon. FOB corn offers were steady/soft given the two-day rally in futures coupled with a break in the Gulf CIF market. Collapsing South American corn values also weighed on US cash markets. CIF corn values were 7-9 cents lower for nearby April and May as barge supplies increased with the return of spring weather in the Midwest and a rally in futures sparked big farmer sales. CIF soya and wheat values were steady on Tuesday afternoon after slipping early in the day.
May corn closed 5-1/2 up at $5.07-1/2 following Monday's USDA quarterly stocks data which kept traders focused on available free old crop supplies. Old-crop corn is trading at levels not seen since last fall's harvest. Concern about the quality of hard wheat coming out of a harsh winter and with potential drought continue to underpin the cash and futures wheat markets though Texas Gulf hard red and soft red wheat Gulf basis offers were quoted nominally unchanged with futures 10-12 cents lower on profit taking. Kansas City May wheat ended 10-1/2 down at $7.53-1/2 and Chicago May wheat closed down 12 at $6.85-1/4.
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