Soybean basis bids, export premiums turn higher
Basis bids for soybeans shipped by barge to U.S. Gulf Coast terminals firmed on Tuesday, and export premiums continued to rise, as market players awaited fresh direction and news about U.S.-China trade talks, traders said.
CIF Gulf soybean barges loaded in October rose 8 cents to 70 cents over CBOT November (SX25) futures. November barges were bid at 75 cents over futures, up 2 cents.
FOB export premiums for October-loaded soybeans were up 7 cent at about 78 cents over futures.
Corn basis bids eased.
CIF basis bids for corn barges loaded in October traded at 82 cents over Chicago Board of Trade December (CZ25) futures. November and December barge loadings also traded at 82 cents over futures.
CIF basis bids for October corn barges eased down 2 cents at 80 cents over Chicago Board of Trade December (CZ25) futures. November barge loadings were bid at 81 cents over December futures, down 1 cent.
FOB export premiums for October corn shipments were up 1 cent at about 97 cents over futures.
Brokers said Chinese exporters and grain buyers have been mostly absent during the extended holiday period commonly known as "Golden Week." But they are expected to return to the market by the end of the week, traders said.
Two dealers said that coming into the fall, exporters had been expecting U.S. farmers to be somewhat aggressive in selling their soybean and corn crops during the early weeks of harvest - which would keep supplies flush.
But the pace of farmer selling has been spotty in recent days, after an initial flurry of cash sales in September, where farmers were clearing out the last of the grain in their bins.
Drafts continue to be cut back along some parts of the Ohio and Mississippi rivers, as low water levels create traffic slow downs.
Adding to that, a lack of normal demand for U.S. soybeans in the export market has helped cool grain barge freight values on the Mississippi at St. Louis, and along portions of the Illinois river, traders said.
For displays of CIF basis, click on the codes in brackets:
U.S. CIF Gulf soybeans (GRYM)
U.S. CIF Gulf corn (GRYN)
U.S. CIF Gulf SRW wheat (GRYO)
U.S. CIF Gulf HRW wheat (GRYP)
For displays of FOB basis, please click on the following codes in brackets:
U.S. FOB Gulf corn (GRZC)
U.S. FOB Gulf soybeans (GRZD)
U.S. FOB Gulf SRW wheat (GRZE)
U.S. FOB Gulf HRW wheat (GRZF)
LINKS:
U.S. barge freight
U.S. export sales estimates
U.S. grain export summary
Brazil soybean export prices (SYBS)
Brazil corn export prices (SYBX)
Argentina grain prices (GRA/ARG)
Russia grain prices (GRA/RU)
