US Gulf FOB corn basis offers were mostly steady on Friday, while soyabeans were firmer on slow farmer selling and talk of fresh export sales. Traders said soft red winter wheat basis offers were weaker while hard wheat was steady, but prices for both were higher in the CIF barge market, which supplies exporters at the Gulf. There were rumours that China was seeking to buy US spring wheat after having cancelled some of its orders from Canada. They rumours helped to fuel CBOT futures.
The Canadian Wheat Board, however, quashed the rumours, saying China had not cancelled any of its Canadian purchases. Only 30 percent of Canada's 2004 wheat crop made the top two grades due to excessive rain, down from 90 percent last year.
Another trader said he believed that some spring wheat was sold to China. "The (cash) market feels like some business was done," he said, although he could not confirm any deal.
Traders said FOB soft red winter wheat basis offers were steady to lower amid a lack of fresh demand. But basis values in the CIF market for December shipment were higher.
Track basis values of hard red winter wheat were higher amid a lack of offers. A trader said some buyers were booking supplies after giving up hope that ocean freight would weaken.
Freight rates on the US Gulf to Japan route were around $70-$75 per tonne, nearing the records highs of $75-$80.
USDA meanwhile said it will donate 200,000 tonnes of white wheat from a government reserve to Sudan.
Traders said soyabean basis offers were higher, along with prices in the CIF barge market.
A trader said Chinese buyers had purchased two to three cargoes of US soyabeans for January shipment. "We sold some beans to China overnight," the trader added.
Traders said high ocean freight was keeping overall demand thin. USDA said export sales fell 70 percent last week, compared with the previous week.