Basis bids for corn and soyabeans shipped by barge to the US Gulf Coast were steady to slightly higher on Tuesday as declines in futures kept farmer sales to a minimum, traders said. Chicago Board of Trade (CBOT) corn futures slumped to life-of-contract lows while soyabeans dropped to a three-week low after the US Department of Agriculture (USDA) in a monthly report forecast larger global stockpiles. CBOT wheat also sank to contract lows amid abundant world supplies.
US farmers were unwilling to sell at the lower prices, but sufficient corn and soya stockpiles in the wake of bumper harvests limited potential gains in cash bids and futures. USDA in its daily export reporting system said 168,300 tonnes of US soyabeans were sold to unknown destinations, 152,000 tonnes of US corn was sold to Mexico and 120,000 tonnes of US hard red winter wheat to Morocco.
Barge freight was mostly flat, with shipping costs slightly higher on the Mississippi River at St. Louis as low water levels forced shippers to run lighter loads, a barge broker said. Soya barges loaded in the first half of December were bid at 19 cents over CBOT January soyabean futures, down 1 cent from earlier on Tuesday but up about 3 cents from Monday. December soyabean ocean shipments from the Gulf were offered at 40 cents over futures.
CIF bids for corn barges for first-half December delivery were up 1 cent from earlier on Tuesday at 26 cents over CBOT March futures and Gulf export shipments were offered flat at about 48 cents over CBOT March. Bids for soft red winter wheat barges shipped in December were about steady at 45 cents per bushel over CBOT March futures while export offerings held at 65 cents over futures. December CIF HRW wheat bids declined 9 cents to 230 cents over the K.C. March contract for 12 percent protein grain. Nominal export offers were about 245 cents over futures.