US FOB Gulf soyabean basis offers fell for old-crop loadings for the second straight day with lower processor bids and increased competition from South America feeding the pressure, traders said on Wednesday. FOB corn basis offers were unchanged while wheat was steady to firmer, led by soft red winter wheat forward positions. Traders were firming up their basis values after wheat futures fell more than $1 a bushel to three-month lows this week.
Soyabean FOB basis offers for June and July were quoted 3 cents lower while September loadings were quoted 8 cents lower, with June at 87 cents over and July at 82 cents over July futures. Traders said that a drop at interior processors with an eye on summer downtime contributed to the cash market weakness after good movement in recent weeks. CBOT July soyabeans ended 1-1/4 cents higher at $14.82-1/2 a bushel while November soya closed 4-1/2 cents lower at $12.17-1/4.
FOB corn for June was quoted steady at 105 cents over July futures. US corn remains competitive with new-crop South American supplies although Argentine quotes are coming in at a discount now, traders said. Argentine corn for July is being quoted at about $208 a tonne compared August quotes for US Gulf at about $211, traders said. CBOT July corn closed at $4.56-1/4, down 2 cents.
FOB SRW wheat quotes were unchanged for June and July but marked 2 to 4 cents higher for August through December loadings. US SRW cash June was being quoted around $251 per tonne, $12 cheaper than French wheat and on par with Black Sea June quotes. Traders said the firmness in forward FOB values was tied to some concerns about storage rates rising through the summer and fall and weighing on farmer selling on new crop. HRW June/July FOB values were also firmer on Wednesday with June quoted at 145 cents over KCBT July, up 2 cents. Both CBOT and KCBT futures steadied on Wednesday on profit taking after three-month lows were set. CBOT July wheat closed 2 cents higher at $6.14-1/2. Kansas City July futures rose 5-3/4 cents to close at $7.13-1/2 per bushel. Traders were awaiting USDA weekly export sales data to be issued on Thursday morning.
Comments
Comments are closed.