FOB Gulf soyabean basis offers steady

US FOB Gulf soyabean basis offers were mostly steady on Wednesday night but the Gulf barge basis for soya eroded further on talk that China had cancelled at least one cargo due to be loaded out of the Pacific Northwest.
Chicago futures traders had cited talk during the day of as many as four cargoes of US beans to China being cancelled out of Portland.
Cash merchants said basis bids were weaker at the port but they couldn't confirm the cancellations.
"It feels like something definitely happened," said one soyabean merchant. "I think definitely one was cancelled with maybe a couple more being shopped. People are looking to sell FOB March now where a week ago you couldn't find a thing."
The trader said the beans to China were simply a unit train or two that would be looking for a new home.
Given supplies in the west from last year's drought-reduced crop, that demand was sure to emerge sooner rather than later, other traders said.
Exporters said China was continuing to react to shifts in ocean freight, domestic Chinese crusher needs given bird flu reducing the meal production outlook, and the advance of South America's coming record harvest.
As of January 29, China had bought 8.334 million tonnes of US soyabeans since September 1 and shipped all but 1.336 million tonnes, according to USDA export sales reports.
Monday's USDA export inspections showed that for the week ended February 5, China shipped another 4.226 million bushels of soya out of the Gulf but nil from the PNW.
In January, China loaded 33.8 million bushels of soya out of the Gulf and 11.9 million out of Pacific ports.
USDA on Thursday will issue its export sales and commitments for the week ended February 5.
Two weeks ago, China cancelled 55,900 tonnes of US soya and switched 628,000 tonnes of 03/04 purchases to 04/05 commitments. The week before that, China cancelled 298,000 tonnes of 03/04 commitments.
Gulf barge traders said that the China talk and the recovery in CBOT futures on Wednesday was enough to erode the CIF barge basis.
February CIF soyabeans were bid 38 over CBOT March, down 4 cents from morning levels, and offered 42.
March barges traded at 40 over and were offered 37 against 41. Still, FOB Gulf traders kept nearby FOB offers steady at 45 over March.
CIF corn barge basis values were steady to firm after absorbing two active days of farmer sales on Monday and Tuesday, with the pace slowing on Wednesday.
February/March FOB corn offers held steady at 31 over March but April-July offers eased a penny at 28 over CBOT May.