Corn and soyabean export premiums at the US Gulf Coast declined on Thursday in tandem with eroding CIF barge basis values amid weak export demand and ample supplies, traders said. CIF corn and soyabean basis bids at the Gulf fell by 2 to 3 cents a bushel on Thursday as accelerated farmer selling this week replenished supplies in the export market and as surging futures prices blunted demand.
Flooding on Midwest rivers, particularly the Illinois River, slowed the flow of grain to the Gulf, which prevented even steeper basis declines. Trading was mostly quiet ahead of the long US Independence Day holiday weekend, with markets closed on Friday. Chicago Board of Trade corn futures settled higher on Thursday, posting gains of about 9 percent in each of the past two weeks. The gains have chilled demand from global buyers, traders said. Traders are monitoring overly wet conditions in the eastern US Corn Belt and excessively hot and dry weather in Europe which could drag down corn yields.
FOB corn basis offers for July were unquoted as export loading capacity was sold out. August shipments were offered 2 cents lower at 64 cents a bushel over CBOT September futures, which closed 6 cents higher at $4.28-1/2. FOB Gulf soyabeans for July were unquoted. August offers were 95 cents over CBOT August soya futures, which closed 2-1/2 cents lower at $10.38-1/4.
FOB basis offers for wheat were flat, anchored by dull demand for US supplies as rival exporters have ample grain for sale at lower prices. Egypt's GASC bought 60,000 tonnes of Romanian wheat for shipment August 1-10. US wheat was not offered in the tender. Iraq canceled a tender to buy at least 50,000 tonnes of hard wheat without making a purchase.
FOB SRW wheat for July loadings at the New Orleans Gulf was offered at 70 cents over CBOT September futures, which closed 2 cents higher at $5.90-1/2. FOB hard red winter wheat for July was offered at 120 cents over September HRW wheat futures, which ended 3/4 cent lower at $5.91-3/4.
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