US CIF Gulf corn and soyabean basis values were mostly steady on Monday, with farmer selling remaining slow with rains delaying some of the early harvest. Traders said barge freight on the lower Ohio River was slightly higher as problems with lock and dam 52 on the river delayed barge movement. Rates were steady on other rivers.
"Freight on the Ohio is higher because of problems with the lock 52," said a trader whose grain elevator is situated along the river. "It's up 80 to 120 (percentage points). Traders said soft and hard red winter wheat prices were mostly steady, with both markets waiting for fresh demand. India bought 1.67 million tonnes of wheat at its tender, but the amount did not include any US supplies.
Traders had not expected India to buy US wheat due to phytosanitary issues related to weed seed. India said it bought the wheat from the Australian Wheat Board, Glencore, Concordia and Toepfer for November 2006-February 2007 delivery.
Egypt's General Authority for Supply Commodities (GASC) passed on its tender, saying prices were "too high."
Traders said corn values were mostly steady, supported by slow farmer selling. The traders said export demand was thin, with buyers waiting for Tuesday's USDA crop report.
Analysts were expecting the USDA to forecast 2006 corn production at 10.990 billion bushels, the third largest crop in history. In August, USDA pegged output at 10.976 billion. Traders said rains in parts of the Midwest were slowing the initial harvest.
Soyabean basis values were mostly steady, supported by slow farmer selling. Export demand remained sluggish. Some buyers were waiting for the USDA crop report on Tuesday, while others continued to shop for cheaper supplies in Brazil and Argentina for September shipment.