FOB Gulf corn steady, soya lower

US FOB Gulf corn basis offers were steady on Monday, while soyabeans were lower amid poor demand and a pick up in grain movement, traders said. Farmers sold sizeable quantities of corn and smaller amounts of soyabeans as CBOT futures rallied on concerns over forecast for cool weather in the Midwest through the week. The increased grain movement lifted barge freight, with the mid-Mississippi River trading at 270 percent of tariff, and trades at 265 percent on the Illinois River, traders said.
"Freight is higher because of grain movement," a freight broker said, adding that rates were also supported by tight supplies of empty vessels heading to the Gulf coast.
CBOT futures soared amid fears that cool weather might slow the emergence of the newly seeded corn and soya crops.
"We were buying decent amounts; more corn than beans," a trader located in the northern Midwest said, adding that his purchases of corn would total about 200,000 bushels.
Another trader said he bought large quantities of corn and some soyabeans. "Farmers were selling a lot of corn. It was the busiest day in about six months," he said.
There was a lack of export demand in soyabeans, which weighed on prices. There was talk of Chinese interest in South American supplies, traders said.
Export demand for corn was steady, with FOB prices mostly unchanged despite the pick up in farmer selling.
Traders said corn basis values in the CIF barge market however were pressured by the increased movement.
Hard and soft red winter wheat basis offers were mostly steady. A trader said the hard red winter wheat harvest had begun in northern Texas, the top HRW wheat producing state.
"I have two customers harvesting wheat north of Dallas and they are saying yields are better than last year," he said.
Another trader said farmers were harvesting HRW wheat in Oklahoma. "It's crossed the (Texas) border," he said, adding that initial feedback was yields and quality were "good".
Farmer selling of hard red winter wheat, which picked up with the start of the Texas harvest over the weekend, slowed as KCBT futures soared amid fund buying and hot weather concerns.
KCBT July rose 19-1/4 cents, while CBOT July soft red winter wheat climbed 20-3/4 cents.