Corn and soybean bids weak at US Gulf Coast

26 Jul, 2011

Basis bids for corn and soyabeans shipped by barge to the US Gulf Coast were steady to lower on Monday amid sluggish demand, while wheat basis bids were quietly steady, traders said. Barge freight was steady to weak as demand for freight was slow, traders said.
Farmer selling interest muted early on Monday amid lower futures prices and following last week's sharp drop in cash basis. Dealers reported moderate sales last week of new-crop corn and soyabeans, but little old-crop sales. Grain and soyabean futures on the Chicago Board of Trade were called to open lower on Monday amid improved Midwest crop weather and weak outside markets, traders said.
CIF corn basis bids for July loadings were 85 cents a bushel over CBOT September futures on Monday, down a penny from late Friday. August bids were down 3 cents at 83 over. Nearby CIF corn basis bids fell sharply last week as some domestic processors drastically lowered bids and demand from the Gulf was sluggish, traders said. Processor bids remain at a slight premium to the Gulf on Monday so little grain is being loaded for shipment to the Gulf, they said. Spot CIF soyabean basis bids were steady at 75 over CBOT August futures on Monday. Spot CIF basis bids for soft red winter wheat were unchanged at 35 cents a bushel over CBOT September futures.

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