Basis bids for soyabeans shipped by barge to the US Gulf Coast were firm on Wednesday on strong export demand and light farmer sales, while export premiums held mostly steady, traders said. Chinese importers have stepped up purchases of US soyabeans for shipment in October and November as Brazilian prices are high and supplies there are thinning. Strengthening soyameal demand in China also fueled the buying of US cargoes, traders said.
CIF bids for afloat soyabean barges are at least 20 cents a bushel above bids for boats loaded later this month amid a shortage of export-grade soyabeans at the Gulf. River shipping delays due to low water and congestion at locks also supported spot values. A total of 18 vessels is waiting to pass a low water area of the Illinois River, with dredging not expected to be completed before the weekend, the Army Corps of Engineers said. A locking delay on the lower Ohio river and low water on the Mississippi River near Memphis also slowed navigation.
Soya barges loaded in the first half of September were bid at 70 cents a bushel above Chicago Board of Trade November futures, while full-September barges traded at 50 cents over futures. FOB basis offers for October and November loadings were around 70 cents a bushel over futures. CIF corn basis bids firmed from recent lows, although spot values remain at a large discount to deferred bids amid weak export demand.
Corn export premiums were flat to lower, weighed down by generally light demand and big supplies, traders said. Bids for early September CIF corn barges were up 3 cents at 21 cents above the CBOT December futures contract. FOB offers for first-half October loadings were about 45 cents over futures. Cash premiums for soft red winter wheat at the Gulf were flat while hard red winter wheat premiums were steady to firm on tight supplies of high-protein grain. September SRW barges were bid 40 cents over CBOT December futures. Spot FOB Gulf offers were 75 cents over December futures.
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