FOB Gulf corn firm, demand lifts soyabean

22 Oct, 2004

US Gulf corn basis offers were firm on Wednesday, while soyabeans were higher amid gains in the CIF barge market and slow movement, traders said.
There was cautious optimism in the wheat market as Egypt's General Authority for Supply Commodities (GASC) set a tender to buy 50,000 to 60,000 tonnes of wheat for shipment between November 20 and 30 and/or December 1 to 10, traders said.
The traders were expecting strong competition from French soft wheat and Argentine hard wheat.
A trader said US SRW wheat was priced at $148 per tonne FOB while HRW wheat was around $156.50 on Wednesday. "French and Argentine prices are lower for both," he said.
Soybean basis values were higher, supported by slow movement and exporter demand in the CIF barge market.
Traders said October soyabean bids soared 8 cents to 60 cents a bushel premium the CBOT November in the CIF barge market, which supplies exporters at the Gulf coast.
"It's largely due to the slow movement," a trader said.
Another trader said an exporter was bidding aggressively to grab available supplies. He linked the buying to talk that 2 cargoes of US soyabeans were sold to China on Tuesday.
Corn basis values were steady to higher, supported by steady export interest and slow movement.
A trader said corn basis values for November shipment were being capped by declines in barge freight, and the diminishing 'carry', or higher prices for deferred sales, in the market.

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