US FOB Gulf wheat basis offers fell on Friday pressured by harvest and continued weak export demand while corn and soyabeans were steady in quiet markets, traders said. Soft red winter wheat offers at the New Orleans Gulf fell 5 to 8 cents a bushel late Friday, tracking the drop in the CIF market and reminders that US wheat is uncompetitive in the world market. For the second straight day, Egypt's GASC bought Black Sea wheat.
GASC purchased 180,000 tonnes of Russian and Romania wheat at average FOB price of $192 per tonne. US exporters did not bother offering wheat in Thursday's tender as SRW was $37 per tonne higher on a FOB basis than the winning Russian bid of $190.50 in Wednesday's GASC tender.
HRW wheat basis offers also slid on Friday on poor demand and a pick up in the southern Plains harvest this week. Combines were cutting wheat from the Texas Gulf Coast to as far north as southern Kansas. Exporters said early harvested wheat was coming in at higher test weights and higher quality than initially expected. But they are continuing to monitor quality given the heavy rains in late May that damaged mature wheat.
US FOB SRW wheat offers for June and July were marked down 8 cents at 62 cents over CBOT July, which closed down 1/2 cent at $5.03-3/4 bushel. HRW June/July offers at the Texas Gulf fell 7 cents at 123 cents over KCBT July, which closed up 2-3/4 cents at $5.26.
FOB corn basis offers for July were steady at 68 cents over CBOT July, which closed 3-1/2 cents lower at $3.53. FOB soyabean July offers held at 90 cents over CBOT July, which ended steady at $9.40. Export interest for both corn and soyabeans was quiet ahead of the weekend. The US remains competitive on corn in the world market while exporters see little interest in old-crop soya given normal slow seasonal demand.
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