FOB US Gulf grain basis values were steady to soft after the close on Friday, with no unusual export demand and river conditions continuing to improve ahead of spring planting, traders said. Competition from South America for corn and soybeans and easing concerns about availability of Black Sea supplies as the Ukraine crisis comes off the boil kept a lid on basis strength.
Grain futures were narrowly mixed at the end of the week with planting conditions eyed in the Midwest and concerns about winter wheat coming out of dormancy generally supportive. FOB US soybeans were quoted steady for April at 100 cents over and May at 92 over CBOT futures with major buyers focused on new-crop.
US net export sales last week were only 66,200 tonnes but 51,200 tonnes went to China to fill in needs. CBOT May soybeans ended down 1-1/2 cent at $14.73-3/4/bushel. The Decatur, Illinois, processor bid dropped 5 cents late on Friday. Both corn and soybean farmers have been cleaning bins this week ahead of spring fieldwork, especially when corn futures went over $5/bushel. FOB corn offers were steady nearby with April quoted 95 over and May 85 over futures. CBOT May futures ended up 1-3/4 at $5.01-3/4.
Traders said demand continues to be decent for old- and new-crop bookings for corn at the Gulf. FOB wheat values for both hard and soft red were called soft by traders with most content to let a 10-cent break in futures on Friday uncover demand. One SRW trader noted more inquiries for soft red, both old and new crop. Mississippi barge freight continues to soften with spring weather but Texas rail freight remains expensive, brokers said. SRW at the Gulf for April was quoted at 115 over. Texas Gulf HRW was 170 over futures, continuing to reflect the elevated cost of Texas rail cars. Kansas City May wheat closed 10-1/4 lower at $7.33-3/4; Chicago May wheat ended 6-1/4 down at $6.99-3/4.
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