Corn export premiums at the US Gulf Coast climbed in tandem with firmer basis bids in the CIF barge market on Tuesday as limited farmer selling and good export demand supported values, traders said. FOB Gulf soyabean basis offers were flat amid seasonally slowing demand as large supplies of lower-cost South American soyabeans are flooding the market. But premiums remain steeply inverted due to tight spot loading capacity at the Gulf.
CIF corn basis values jumped by 2 to 4 cents per bushel on Tuesday as a recent drop in Chicago Board of Trade futures prices halted farmer selling at a time when exporters are loading more corn for export. Corn export inspections last week were the largest in 10 months. Traders are monitoring labor developments in South America as a Brazilian trucker strike appeared to be winding down while an Argentine farmer strike is poised to begin.
The trucker strike has shifted at least two Brazilian soya shipments to the US Pacific Northwest and deprived some ports of needed soyabean supplies. The Argentine farmer strike was not expected to have a major impact, traders said.
FOB Gulf March corn basis offers were a penny higher at 62 cents a bushel over CBOT May futures, which closed 3 cents higher at $3.91 a bushel. FOB Gulf March soyabean basis offers were unchanged at 95 cents a bushel over Chicago Board of Trade March futures, which closed 2-1/2 cents lower at $10.08-3/4 a bushel. Soft red winter wheat FOB March premiums were unchanged at 115 cents over CBOT May futures, which closed 6 cents higher at $5.06 per bushel.
Comments
Comments are closed.