Export premiums for corn and soyabeans shipped from the US Gulf Coast were firm on Monday, supported by slow movement of grain-loaded barges from the Midwest due to flooding on the Mississippi River and its tributaries, traders said. US wheat export premiums were mostly steady, capped by light export demand due to high US prices and ample global supplies.
Barge traffic on inland waterways remained restricted in several areas on Monday following heavy precipitation last week. The restrictions, including on tow size and minimum tow boat horsepower, limited the amount of corn and soyabeans available to exporters. CME Group Inc said it declared force majeure for all soyabean shipping stations on Monday due to flooding on the Illinois River. CIF soyabean barge values have fallen from peaks last week and were generally steady on Monday. Barges loaded in December traded Monday at 62 cents a bushel above CBOT January futures, compared with a high trade of 77 cents over last week, traders said. January barges traded at 59 cents over on Monday.
FOB basis offers for soyabeans were firm as river shipping problems and a lack of fresh sales by farmers limited supplies available to exporters. Concerns about Chinese demand for US soyabeans kept a lid on basis gains, traders said. Data showing China's factory activity shrank for a 10th straight month in December pressured Chinese stocks on Monday and the yuan fell to a 4-1/2-year low against the dollar. FOB Gulf soyabeans loaded in the last half of January were offered at about 90 cents a bushel over CBOT March futures, which closed 8-1/4 cents lower at $8.56 a bushel.
January corn offers were 58 cents over CBOT March futures, which ended 7-1/4 cents lower at $3.51-1/2 a bushel. January shipments of soft red winter wheat at the Gulf were offered at about 70 cents over CBOT March futures, which closed 11-3/4 cents lower at $4.58-1/4 a bushel. January hard red winter wheat offers from the Texas Gulf were about 114 cents over March futures, which closed 14-1/4 cents lower $4.54-1/4 a bushel.
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