FOB US Gulf grain basis offers were steady late Friday as markets were quiet ahead of the weekend and more importers turned to South America for cheaper newly harvested crops, traders said. FOB soyabean offers were unchanged against a backdrop of lower futures as news of Chinese importers defaults on at least 500,000 tonnes of US and Brazilian soyabean purchases looms. At least one defaulted cargo was sold by Japan's Marubeni, sources said.
The defaults, spurred by poor crushing margins and tighter credit standards in China, brought back memories of 2004 when Chinese firms last defaulted on US soyabean purchases. Nearby soya basis offers were steady with April quoted at 105 cents over and May 95 cents over futures given tight logistics and thin domestic supplies.
Fresh demand for new-crop soyabeans supported October-November basis offers, quoted at 108 cents over, traders said. USDA on Friday confirmed a sale of 330,000 tonnes of 2014/15 soyabeans to unknown. CBOT May soya closed 19-1/4 cents lower at $14.63 per bushel on China default worries. Gulf FOB corn was unchanged, with April offered at 90 cents over and May 85 cents a bushel over futures. Tight logistics and strong seasonal demand keeps nearby values at a premium of 10 to 15 cents a bushel to summer offers.
Warmer temperatures blanketing the Midwest late this week raised hopes fieldwork and planting would soon begin in the central Corn Belt. May corn ended 2-3/4 cents lower at $4.98-1/2 a bushel on improved weather for planting. FOB Texas Gulf hard red winter wheat and New Orleans Gulf soft red wheat values continued to have a soft tone as export interest remains quiet as world buyers look to cheaper origins.
US exporters did not participate in Egypt's GASC snap wheat tender with results released Friday. Egypt bought 230,000 tonnes of Russian, Romanian and Ukrainian wheat for shipment May 1-10, priced at $286 to $290 a tonne, FOB. Freight averaged $12 a tonne - roughly one-third the cost to ship wheat from the US Gulf Coast to Egypt. Kansas City May wheat ended 3 cents lower at $7.19-1/2 per bushel on outlooks for much-needed rain to move into the southern US Plains wheat belt. Chicago May wheat closed 2 cents down at $6.60-1/4.