FOB Gulf Grain-Basis offers quietly steady ahead of holiday

CHICAGO, July 2 (Reuters) – U.S. FOB Gulf grain basis offers were unchanged after the mostly lower futures close on Wednesday with traders switching early into holiday mode ahead of Friday’s long July 4th holiday weekend.

* This week’s sharply lower futures markets following bearish USDA reports amid mostly ideal weather in the Corn Belt prompted traders to let the board prices try to draw fresh export interest. Both Black Sea wheat and South American corn and beans are currently meeting world markets.

* High water and flooding in the northern Corn Belt keeps barge traffic restricted on the Mississippi River north of St. Louis which is supportive for all grain basis markets at the moment.

* Corn continued to see the most old-crop interest after nearby futures fell to six-month lows this week and the board looks to test $4 a bushel. July corn ended 4-1/4 cents lower at $4.18-1/2.

* FOB corn offers were steady with July at 95 cents over CBOT July futures and August/September at 85 over September futures. OND slots were also unchanged at 90 over December.

* Soybean offers were steady with July at 100 over CBOT July futures and September new-crop at 180 over CBOT November.

* July soy ended 7-1/2 down at $13.92-1/2 and November closed 6 lower at $11.41-1/2.

* Wheat basis values held steady after Tuesday’s GASC tender showed SRW wheat still well above Black Sea wheat. Disease concerns, including vomitoxin due to rains during harvest remain supportive in the background. CME’s variable storage rate scheme is also tightening free supplies of SRW helping to support the basis.

* SRW wheat July/Aug/Sept were all unchanged at 95 over September futures with OND slots held at 105 over CBOT December. HRW July quotes at the Texas Gulf were nominal at 155 over KCBT September.

* CBOT Sept wheat ended 3 up at $5.75-1/2 and KCBT Sept closed 7 down at $6.81-3/4.

* U.S. grain futures markets close at noon CDT (1700 GMT) on Thursday, ahead of the July 4th holiday and reopen on Monday at 8:30 am CDT (1330 GMT).

* Traders await USDA’s weekly export sales report on Thursday morning. Estimates in tonnes:

2013-14

2014-15 Wheat

0

300,000-450,000 Corn

200,000-350,000

300,000-450,000 Soybeans

0-150,000

300,000-500,000 Soymeal

0-100,000

0-150,000 Soyoil

0-20,000

0-10,000 (Reporting by Christine Stebbins; Editing by David Gregorio)

About the author

Comments

explore

Stories from our other publications