US FOB Gulf soyabean bids rise to one week high

15 Oct, 2017

Basis bids for soyabeans shipped by barge to the US Gulf Coast rose to a one-week high early on Thursday on tight spot supplies, but later pared those gains after surging futures prices triggered active farmer sales, traders said. The US Department of Agriculture cut its soyabean yield forecast in a monthly report, sending Chicago Board of Trade futures to a 2-1/2-month high. The rally fuelled the most active farmer sales to river elevators in several weeks, traders said.
CIF October soyabean barges traded at high as 30 cents a bushel over CBOT November futures early on Thursday, up from trades at 25 and 26 cents over futures late on Wednesday. Spot bids were around 23 cents over late on Thursday. Barge shipping is disrupted at locks 52 and 53 on the lower Ohio River due to emergency repairs that may not be completed for several more days. More than 50 vessels were waiting to transit the area on Thursday afternoon, according to Army Corps of Engineers data.
Export premiums for soyabeans loaded at the Gulf were mostly steady to weaker amid rising supplies from the US harvest and solid demand, traders said. Spot offers were around 51 cents over CBOT November futures. Corn basis values were flat to weaker on light demand and plentiful supplies, while wheat basis was quietly unchanged.
Bids for October corn barges were 4 cents lower at 23 cents above the CBOT December futures contract. FOB corn offers for late October loadings were about 50 cents over futures. October soft red winter wheat barges were bid 50 cents over CBOT December futures. Spot FOB Gulf offers were 85 cents over December futures.
October CIF hard red winter wheat bids were 177 cents over the K.C. December contract for 12 percent protein grain. FOB offers for October vessels were 190 cents over futures. The USDA is due to release weekly export sales data early on Friday.

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