US FOB Gulf soyabean basis offers firmer

US FOB Gulf soyabean basis offers were steady to firmer after the close on Tuesday, with new-crop values 2 to 5 cents per bushel higher, reflecting recent Chinese interest, traders said. FOB corn and wheat basis offers were generally steady amid a drop in futures and easing concerns about Black Sea exports after Ukraine elected a new president on Sunday.
Soyabean offers for old-crop were unchanged against a backdrop of sharply lower futures and thin demand while new-crop soya remained competitive. Renewed chatter of some Chinese buyers facing credit problems to import Brazilian soyabeans, reports that one to two cargoes of South American soyabeans were arriving at East Coast ports and signs last week's CBOT rally to contract highs rationed demand given the drop in soya export inspections weighed on market sentiment.
Brazilian soyabeans for June loadings at $550 per tonne are about $30 cheaper than Gulf soyabeans, traders said. USDA on Tuesday reported soya export inspections of 89,269 tonnes for the week ended May 22, down sharply from the 175,814 tonnes inspected the week before. FOB June soya offers were 95 cents over July futures and July offers were 90 cents over futures - both unchanged from Friday. October/November were up 2 to 4 cents at 116 cents over and 118 cents over November futures, respectively.
July soyabeans closed 26-3/4 cents down at $14.88-3/4 per bushel, a setback from last week's rally to a contract high. November futures ended 27 cents lower at $12.38-3/4. FOB corn basis held firm with customer interest steady for July loadings and some limited interest in August, traders said. FOB corn for June was unquoted and July and August loadings were steady at 85 cents over CBOT July futures.
USDA reported strong weekly corn export inspections for of 1.16 million tonnes. Egypt took 205,814 tonnes out of the Gulf. Good planting progress and favourable Midwest weather, pointing toward big yields this season, pressured futures. CBOT July corn closed 8-1/4 cents down at $4.69-3/4. FOB wheat offers were steady with customer inquiries slow. SRW values were now competitive with Black Sea after the sell-off in futures but freight remained pricey to Europe.
Weekly export inspections for wheat were 507,888 tonnes, down from 592,059 tonnes the week before. Brazil was a big buyer, with 87,292 tonnes out of the Gulf. FOB SRW wheat was offered at 70 cents over July futures for first half June and 68 cents over for last half. HRW values were unchanged with June offered at 148 cents over and Kansas City July futures at 145 cents over futures. CBOT July closed 11-1/2 cents lower at $6.41; KC July wheat fell 6-3/4 to $7.38-1/4 on improving HRW wheat conditions after much-needed rains fell across the belt.