US Gulf FOB corn and soyabean basis values were steady on Tuesday, with fresh export sales supporting corn while soyabeans lacked fresh business.
Dealers said hard and soft red winter wheat basis offers were mostly steady, with both markets lacking fresh demand.
Corn basis offers were steady, with farmer selling slowing amid weakness in futures. The USDA said exporters reported the sale of 220,000 tonnes of US corn to unspecified buyers.
It said 165,000 tonnes were old-crop supplies for delivery in the current marketing year ending August 31 and the rest for shipment in 2004/05. There was some speculation in the market that the corn might be heading to Japan.
Dealers said the announcement helped to strengthen basis values in the CIF barge market, which feeds exporters at the US Gulf. They said CIF April corn traded at 20 cents a bushel over the CBOT May.
One dealer said a slowdown in farmer selling was also helping to support basis values. "With farmers in the fields, corn in the pipeline is going to get tighter," one dealer said, adding that exporters needed supplies to fill vessels.
Soybean basis values were steady, but there was a continued lack of fresh export demand due to high prices.
Although CBOT futures have fallen sharply this week, the May contract has managed to hold above the $10.00-mark.
Dealers said global export demand had shifted to Brazil and Argentina, the world's top exporters after the United States.
The soya harvest in Brazil was 57 percent complete as of April 2, ahead of last year's pace of 51 percent.
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