US FOB Gulf basis offers for corn and soyabeans were higher for old-crop shipments on Monday, gaining in tandem with higher nearby CIF basis values as rising river levels slowed barge shipping and raised costs for exporters, traders said. FOB Gulf wheat basis offers held mostly steady on weak export demand and lower futures prices.
Spot CIF corn and soyabean basis bids jumped by 4 to 5 cents a bushel on Monday as heavy rains throughout the Midwest swelled rivers, slowing barge movement to the Gulf Coast. A portion of the Illinois River was closed on Sunday and Monday after barges broke loose from a tow and struck a dam. Navigation on other sections of the river was also restricted due to high water and heavy currents.
Good global demand for old-crop corn underpinned nearby basis values. US corn was competitively priced for shipments through the summer, prompting traditional buyers to book purchases. Traders noted demand from Japan and Colombia for mid-summer loads. The USDA on Monday confirmed private sales of 120,000 tonnes of old-crop US corn to Japan.
The USDA said corn export inspections last week totalled 1.1 million tonnes, mostly to traditional customers. Soyabean inspections were 226,600 tonnes and wheat was 377,800 tonnes.
Near term soyabean demand remains light due to stiff competition from South American suppliers. Demand for US wheat was quiet as rival exporters were offering supplies at lower prices. Russian wheat was the cheapest wheat offered in a hard wheat tender by Iraq, although no purchase has been made yet. US wheat was the most expensive.