CIF Gulf Grain Soy basis steady weak on dull demand

CHICAGO: Basis bids for soybeans shipped by barge to the U.S. Gulf Coast were steady to weaker early on Wednesday on sluggish demand and gradually improving barge movement on rivers following spring floods, traders said.

CIF corn basis bids were mostly steady, underpinned by moderate demand and tight supplies at the Gulf following weeks of sluggish southbound barge movement, traders said.

Wheat basis bids were mostly steady amid slow movement and limited demand.

Lifting of Russian ban on grain exports on July 1 seen hurting demand for costlier U.S. wheat. In a milling wheat tender by Lebanon, Russian wheat was aggressively offered about $70 a tonne cheaper than U.S. wheat.

Some shipping restrictions on barge movement remain in place on the lower Mississippi River, but the river is receding. Large supply of loaded barges in the St. Louis and Cairo areas awaiting transit to the Gulf amid barge tow size restrictions on the lower Mississippi, traders said.

CIF corn basis bids for May loadings early on Wednesday were 62 cents a bushel over Chicago Board of Trade July futures, up a penny from late Tuesday. June bids were steady at 63 over.

CIF soybean basis bids for May and June loadings were a penny lower at 75 cents a bushel over CBOT July futures.

Nearby CIF SRW wheat basis bids were steady at 80 over CBOT July futures, steady with Tuesday.

COPYRIGHT REUTERS, 2011