CIF/FOB Gulf Grain-Soybean, corn basis flat to lower on weak demand

Basis bids for corn and soybeans shipped by barge to U.S. Gulf Coast terminals and loaded for export were flat to lower on Friday on light demand and ample supplies in the export pipeline, traders said.

Supplies of corn and soybeans in export channels were adequate following an increase in southbound barge shipments as newly harvested crops are flooding the market.

A drop in soybean futures prices late this week triggered fresh demand from China for new-crop Brazilian soybeans. Demand for U.S. shipments was slow, although buyers in China still had needs to fill for January and February loadings, traders said.

Spot barge rates were steady to down 25 percentage points of tariff on Midwest rivers on Friday. Lower rates this week have weighed on CIF basis values.

CIF Gulf soybean barges loaded in November traded at 54 cents over Chicago Board of Trade (CBOT) January SF24 futures, down 8 cents from Thursday. December barges traded 5 cents lower at 63 cents over futures.

Export premiums for soybeans loaded through January fell 6 cents to 72 cents over January SF24 futures.

CIF November corn barges were bid a penny lower at 55 cents over December CZ3 futures.

November corn FOB export premiums were 66 cents over futures, down 2 cents.
Source: Reuters (Reporting by Karl Plume in Chicago; Editing by Shilpi Majumdar)