US FOB Gulf corn basis offers were lower on Wednesday amid adequate supplies in the export pipeline and thin demand, while slow farmer selling firmed soyabean prices, traders said. Barge freight bids for shipment this week were mostly steady after easing 10 to 20 percentage points on the Illinois, lower Ohio and lower Mississippi rivers on Tuesday.
"Freight has topped off," a trader said, referring to the rates turning flat after rising sharply last week.
Traders said Israel bought a Panamax cargo of corn and soyabeans from South America at its tender.
They said Peru's tender to buy a Panamax-cargo of corn, soyameal and wheat for August shipment was still working.
The traders said Costa Rica was seeking 22,000 tonnes and 21,000 tonnes of US wheat for September-October shipment.
Taiwan set a tender for Friday to buy 12,000 tonnes of corn and 23,000 tonnes of soyabeans from the United States for August-September shipment from the Gulf or Pacific Northwest.
Traders were hopeful that export demand for corn would pick up in the wake of a slump in ocean freight, but added that continued rallies in CBOT corn were limiting interest.
Freight rates on the benchmark US Gulf to Japan route was quoted at around $35 per tonne, down from the mid-$70s two years ago. Rates from the Pacific Northwest to Japan were about $20 per tonne.
Soft red winter wheat basis offers were firm, in line with strength in the CIF barge market, traders said.
"The harvest is winding down and we are seeing a little bit of business in soft wheat," a trader said, adding that farmers were not selling much wheat as they waited higher prices.
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