CIF/FOB Gulf Grain-Corn, soybean barge bids creep higher
Basis bids for corn and soybeans shipped by barge to the U.S. Gulf Coast and loaded for export rose on Friday.
Low water levels on the Mississippi River remain a concern for shippers transporting crops to the Gulf as the U.S. corn and soy harvests advance, grain traders said.
American Commercial Barge Line said on Thursday it imposed draft and tow-size restrictions on the lower Mississippi River. The company warned of transportation delays of 48 hours to 72 hours due to reduced navigable space in certain areas.
U.S. barged grains movements last week totaled 129,900 tons, down 25% from the previous week and 38% than a year earlier, according to the U.S. Department of Agriculture.
Competition for export business from South America continues to hamper overseas demand for U.S. corn and soy.
CIF bids for corn barges loaded in September were quoted on Friday at around 83 cents over Chicago Board of Trade December CZ3 corn futures, up about 5 cents from Thursday.
Offers for FOB corn loadings at the Gulf in October also firmed, rising 2 cents to about 112 cents over December futures.
CIF soybean barges loaded in September rose 3 cents to about 83 cents over CBOT November SX3 futures.
Export premiums for soybeans loaded in the first half of October were steady at 100 cents over futures. Premiums eased slightly for soy loaded in the first half of November, December and January.
Source: Reuters (Reporting by Tom Polansek; Editing by Shounak Dasgupta)