US FOB Gulf corn basis offers fell on Tuesday continuing a week-long decline due to a lack of export demand and lower prices on interior rivers, while soyabeans held steady, traders said. Corn for December shipment offered at 48 cents a bushel premium to CBOT December, down from 57 cents over a week ago.
Few export sales with US corn $15 to $20 per tonne more expensive than Brazilian corn and Black Sea feed wheat. Only captive customers such as Mexico and Japan buying US corn, traders said. Soyabeans for December shipment offered at 75 cents a bushel premium to CBOT January, compared with 73-75 cents over a week ago.
US soyabeans cheapest in the world and should dominate until early 2009 when South America harvests a new crop. Lack of farmer selling keeping basis levels firm despite drop in barge freight. Dryness in Argentina could hinder soyabean planting, which is bullish for US export sales, traders said. Oil World cuts Brazil's soyabean crop forecast. US SRW wheat unable to compete in export market at $200 per tonne FOB. French wheat at $180; Black Sea wheat at $160. Only Asian customers such as Japan and Taiwan buying US wheat.
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