US CIF basis values for corn barges were edging higher on Monday amid tight supplies and signs of renewed export interest as ocean freight rates retreat, traders said. Soyabeans and wheat basis values held steady in a market that has seen slow export demand for weeks.
CIF corn for nearby shipment was bid 35 cents a bushel premium to CBOT July, up a penny from Friday and up 9 cents from a week ago, traders said. The market was supported by tight supplies, which has caused domestic processors and ethanol plants to raise bids.
The benchmark Baltic Dry Index, which measures prices for shipping dry commodities, ended at 6,554 on Friday, down from an all-time peak of 6,688. USDA said exporters reported the sale of 316,800 tonnes of US corn to an unspecified destination for delivery in 2007/08.
South Korean feed makers are expected to tender for corn this week if freight rates fall further. South Korea has not tendered for any corn since the Korean Feed Association passed on a tender on April 17. The Korea Corn Processing Industry Association is expected to seek up to 110,000 tonnes of food-grade corn for September arrival this week, a trader in Asia said. Taiwan's Maize Industry Procurement Association - also known as the Members Feed Industry Group - was expected to re-tender this week for up to 60,000 tonnes of either US or Argentine corn, traders said. CIF soyabean bids for nearby shipment were steady but had a weak tone due to slow export demand. CBOT soyabeans hit a 2-1/2 year high last week, keeping buyers on the sidelines.
CIF soyabeans for nearby shipment were bid 3 cents a bushel under CBOT July, down from 5 cents premium a week ago. USDA said exporters reported the sale of 110,000 tonnes of US soyabeans to China for delivery in 2007/08. The sale may stem from 5.76 million tonnes of contracts signed on May 14 at a ceremony at the Chicago Board of Trade, traders said. Exporters don't have to report the sale to USDA until the parties agree upon a price. Many of the contracts signed at the ceremony did not include a price, only a shipment date.