US CIF Gulf corn and soybean basis values were mostly steady to lower on Thursday amid a pickup in movement that helped to underpin barge freight. Hard and soft red winter wheat prices were mostly steady, with traders hoping for a pickup in business following sharp overnight declines in CBOT and KCBT futures.
Traders said soybean basis values were weak, adding to losses from Wednesday when movement increased. "There were quite a few beans moving," a river trader said, adding that two exporters sold large amounts on Wednesday. Traders attributed some of the weakness in soybean basis values, which fell sharply on Wednesday, to talk of a pickup in export sales in Brazil and Argentina.
Global demand for soybeans normally turns to the United States from October as newly harvested supplies enter the supply chain and when prices are the most competitive.
USDA said soybean export sales were 627,000 tonnes last week, 28 percent below the previous week. China bought 297,800 tonnes, which included 55,000 tonnes previously listed as being sold to unknown buyers. Corn basis values were steady to lower, weighed down by scattered farmer selling, traders said.
USDA said corn export sales totalled 1.05 million tonnes last week, 28 percent above the previous week. Mexico was top buyer with 432,900 tonnes, while Japan bought 391,100 tonnes. Separately, the USDA said exporters reported the sale of 151,200 tonnes of corn to unknown buyers for delivery in the current marketing year that began September 1.
Traders said the pickup in corn and soybean movement was helping to underpin barge freight. "The market bottomed out," a river trader in southern Minnesota said. "Freight has firmed up a little bit," he said, adding that his elevator was buying corn and some soybeans. The slow pace of grain movement in recent weeks amid rain delays to the Midwest harvest coupled with the availability of empty barges have been pressuring freight values.
Wheat basis values were steady, with volatility in US futures keeping a lid on export demand. USDA said wheat export sales were 460,800 tonnes last week, 4 percent above the previous week. Nigeria was top buyer with 121,400 tonnes, while Japan took 101,200 tonnes. Tunisia bought 160,000 tonnes of optional origin milling wheat for November to January shipment.