Basis bids for corn and soyabeans shipped by barge to the US Gulf Coast were higher for the third straight session on Friday amid worries that vessel traffic will slow next week on the icy Illinois River, traders said. Barges likely will be delayed on the Illinois River as colder-than-normal temperatures create icy conditions. Low water levels on the Mississippi River due to icy may also force shippers to run lighter loads.
Shipments along the upper Mississippi River and parts of the middle section of the Mississippi River already were shut down until spring. Delays on other rivers would limit supplies flowing to Gulf Coast export terminals. Exporters at the Gulf were more aggressively bidding for supplies to protect against the potential delays. Grain buyers along the Illinois and lower Ohio rivers raised their bids in efforts to entice farmers to sell.
Bids for corn barges loaded in the final days of December were up 2 cents to 40 cents above Chicago Board of Trade March futures. FOB basis offers for January corn shipments were about steady at 60 cents over futures. CIF bids for soyabean barges loaded this month were up 4 cents to 48 cents a bushel over CBOT January futures. FOB Gulf offers for January soyabean shipments were 50 cents over CBOT March futures.
Bids for soft red winter wheat barges loaded in January were steady at 55 cents per bushel over CBOT March futures. FOB Gulf export offers for January shipments were flat at 70 cents over futures. December CIF hard red winter wheat bids were unchanged at 225 cents over the K.C. March contract for 12 percent protein grain. January export offers were quoted around 240 cents over futures.
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