US FOB Gulf soyabean basis offers were weak on Monday due to lack of export demand and rising futures prices, traders said. Corn and wheat export premiums held steady amid strong export demand for both commodities.
US soyabeans for shipment in the first half of August were offered at 2 cents a bushel discount to CBoT August. Basis offers were quoted at a discount to futures prices for the first time since the early 1990s starting on Friday.
China has no appetite for soyabeans due to higher CBoT prices hurting crush margins. And what few cargoes China has bought have generally come from South America, where supplies are cheaper.
In the CIF barge market that supplies export elevators, soyabeans for July shipment traded at 10 cents a bushel discount to CBoT August on Monday, traders said. One trader said that July soyabeans had traded at 12 cents under.
July soyabeans a week ago were trading at option to the futures contract. "The market is devoid of anyone doing anything other than squaring their positions," said a trader.
Corn export premiums remained strong, supported by solid export demand. CIF corn basis bids were firm, supported by strong export demand. Sales recently have been the strongest so far in 2007 as a sharp drop in CBoT corn spurred buying by South Korea and other Asian countries.
The state-run Taiwan Sugar Corp will tender on Tuesday to buy US corn and soyabeans for August shipment. Taiwan's Maize Industry Procurement Association was expected to re-tender for up to 60,000 tonnes of US corn for shipment August 15-September 12, traders said.
They passed on all offers last week. Japan was expected to buy more corn for October-December shipment - with the fall in CBoT corn outweighing high freight rates, traders said. Wheat export demand continued to rise amid tight world supplies.