Soy, corn barge bids consolidate after firming this week

Basis bids for soybeans shipped by barge to the U.S. Gulf Coast eased on Friday and corn barge bids were flat, consolidating after an upswing this week tied to improving export demand for both crops, traders said.

Barge freight costs on Midwest rivers firmed on Friday, supporting CIF bids at the Gulf, as forecasts called for frigid temperatures in the coming days that could inhibit barge movement. Offers rose by 25 percentage points for barges available next week on the Illinois River, the Lower Ohio and the Mississippi River at St. Louis.

CIF Gulf soybean barges loaded in January traded at 120 cents over Chicago Board of Trade (CBOT) March (SH3) soy futures and were re-bid at 114 cents over futures, down a penny from Thursday’s last bid. February barges were bid at 108 cents over futures, steady with Thursday.

FOB offers for February soybean shipments were around 130 cents over March futures, unchanged from Thursday, while premiums for April shipments rose by a dime to 115 cents over CBOT May (SK3) futures.

For corn, bids for CIF Gulf barges loaded in January were unquoted and February bids were around 89 cents over CBOT March corn (CH3) futures, unchanged from Thursday.

FOB offers for February corn shipments held at around 95 cents over CBOT March futures, with March FOB offers steady at 98 cents over futures.
Source: Reuters