FOB Gulf corn soft, tight supplies lift soya

23 Oct, 2004

US Gulf corn basis offers were soft on Thursday, while soyabeans were higher as exporters scrambled for supplies to fill orders, traders said.
Barge freight was mostly higher for October shipments on the Illinois River and the Mississippi River at St. Louis. October offers were steady on the Lower Ohio River.
Traders said the pick up in barge freight was due to corn movement as the harvest resumed in parts of the Midwest after being delayed or stalled by rain.
"There's more corn moving to the river," a trader said, referring to the CIF barge market.
Hard and soft red winter wheat basis offers were mostly steady, but there was some disappointment in the market as Argentina won the lion's share of Egypt's tender.
Egypt's General Authority for Supply Commodities (GASC) bought 415,000 tonnes of wheat at its tender for shipment in November and December. US soft white wheat comprised just 60,000 tonnes, with the rest coming from Argentina.
Traders said Argentina was making inroads into Egypt at the expense of US and Australian market share, the traders said.
Soybean basis offers in the CIF barge market, which supplies exporters at the Gulf coast, were firm. October traded at 60 cents a bushel premium the CBOT November. Traders said November soyabeans traded at a premium of 55 cents.
Exporters were scrambling for supplies in the CIF market to fill export orders, traders said, adding that farmer selling generally remained limited due to poor prices.
Traders said the 'carry', or premiums paid for deferred sales, had dropped to 5 cents a bushel for soyabeans compared with 30 to 33 cents two weeks ago in the Midwest - in a signal that supplies are needed now instead of later.
The traders said export demand was thin, with importers holding off purchases. "Buyers don't want to buy soyabeans for December and January shipments now because they feel prices are high. They are going to wait till later," a trader said.
Corn basis offers were slightly lower for nearby positions amid a pick up in farmer selling, traders said.

Read Comments