Basis bids for corn and soyabeans shipped by barge to the US Gulf Coast held mostly steady on Monday, underpinned by high freight rates and solid export demand, while wheat basis bids were flat, traders said. Lock delays and low water on the Mississippi River and its tributaries propelled spot barge freight rates in some areas to record or near-record highs. Bids for grain at river elevators plunged.
The lower Ohio River was temporarily closed to navigation near lock 53 for emergency repairs. More than 65 barge tows are in queue to pass through the lock, a backlog that could take at least five days to clear, shippers said. Export premiums for corn and soyabeans loaded this month were unquoted as exporters were uncertain how quickly supplies could arrive at the Gulf amid continued river navigation problems. Deferred premiums were mostly unchanged.
Soyabean demand from China was muted, with markets there closed for the Golden Week Festival national holiday. Importers there still need to book cargoes for November and December shipment. The US Department of Agriculture on Monday confirmed private sales of 132,000 tonnes of US soyabeans to China and 597,464 tonnes of US corn to Mexico.
Egypt's GASC is seeking cargoes of wheat for November 5-15 shipment via a snap tender. Traders said they expect Black Sea region wheat to dominate the tender, with US prices likely too high to compete for the business. CIF soyabean barges loaded in September were bid 50 cents a bushel over Chicago Board of Trade November futures, steady with late Friday. Exporters have paid premiums of as much as 30 cents above the spot market for afloat and in-port barges, traders said.
FOB basis offers for November soyabean loadings were around 60 cents a bushel over futures. Bids for September CIF corn barges were 42 cents above the CBOT December futures contract. FOB corn offers for November loadings were about 55 cents over futures. October soft red winter wheat barges were bid 55 cents over CBOT December futures. Spot FOB Gulf offers were 85 cents over December futures.