Basis bids for US corn and soybeans shipped by barge to the Gulf held steady on Monday amid scattered farmer selling despite elevators taking 10 cents per bushel protection on corn and 15 cents on soybeans, traders said. Corn sales could pressure basis values due to poor export demand, traders said. Strong soybean sales to China providing outlet for farmer selling with nearby supplies tight.
Barge freight rose last week as elevators on the Illinois River scramble to load out recently bought grain ahead of forecasts for up to two weeks of severe cold weather. More than 250 empty barges heading for the Illinois River in the past week, with 69 empty barges passing through Lock and Dam 27 on Sunday, said the US Army Corps of Engineers. Over the weekend, more than 50 barges loaded with corn and 24 with soybeans down bound through Lock 27.
CORN & WHEAT: US corn export demand stalling with USDA now forecasting ending stocks at 1.79 billion bushels, up from the December estimate of 1.47 billion. South Korea passes on tender for 110,000 tonnes of optional-origin corn for April arrival due to high prices.
Israeli consortium seeking European corn, feed wheat and feed barley. Results awaited from Saudi Arabia's tender for 500,000 tonnes of high-protein wheat, with Australia and Canada favoured to win. Syria in on Monday for 200,000 tonnes of soft wheat with Russian or Black Sea grain expected to win. Dry weather prompts USDA to cut Argentine corn crop to 16.5 million, down from 18.0 million. Soybeans 49.5 million, down from 50.5 million. Wheat 9.5 million, down from 10.5 million. Brazilian corn 51.5 million, down from 53.5 million. Soybeans steady at 59.0 million. Despite smaller corn crops, South American corn slightly cheaper than US supplies.
SOYBEANS: US soybeans continue to enjoy strong demand from China with USDA on Monday confirming a sale of 399,000 tonnes. China buying another 3 million tonnes of soybeans for state reserves, bringing total amount to 6 million tonnes. Chinese processors importing US and South American soybeans due to high price government is paying farmers.