FOB Gulf Grain-Wheat strong on quality concerns

CHICAGO, June 24 (Reuters) – U.S. FOB Gulf wheat basis values continued to surge on Tuesday led by soft red winter with quality concerns as harvest moves north, tightening supplies and pushing bids higher, traders said.

* Corn and soybean FOB basis values were mostly steady against a back drop of soft futures although July soybean offers firmed up a bit.

* FOB SRW wheat offers for July were 5 cents higher at 85 cents over CBOT July futures and August was up 15 cents at 85 cents over the September. September loadings were up 10 cents at 90 cents over the September futures and October was up 5 cents at 95 cents over December futures. CBOT July wheat ended down 8-3/4 cents at $5.71 per bushel.

* Exporters said U.S. wheat remains over priced for Egypt and other buyers but was purely a function now of domestic harvest quality. CIF barge rates have jumped as millers and exporters scramble to find No. 2 graded SRW wheat amid late season rains. Vomitoxin continues to hang over new-crop supplies, with much more wheat being graded No. 3 than expected.

* U.S. HRW values at the Texas Gulf were mostly steady, with July at 155 cents of Kansas City July futures and August at 150 cents over KC September futures – both unchanged. September was offered at 147 cents over, up 2 cents. KC July ended 8-1/2 cents down at $7.05-1/2.

* Traders said the quality of HRW arriving at terminals was good but yields continue to be disappointing, underpinning a firm basis.

* U.S. soybean FOB offers were steady to firm with most interest continuing to surround new-crop especially for early harvest slots in September/October.

* September FOB soybeans were offered at 165 cents over CBOT November futures and October at 131 cents over November, steady with Monday. Old-crop July offers were marked up 3 cents at 95 cents over CBOT July futures amid the usual tight in-season stocks but tempered by processor downtime.

* CBOT July soy closed 11-1/4 cents lower at $14.13-1/2; November ended 9-1/4 cents down at $12.24-1/2.

* Corn FOB values were unchanged within inquires steady. July offers were at 90 cents over CBOT July futures and August and September loadings were both offered at 85 over CBOT September.

* July corn ended 1-1/2 cents lower at $4.43 per bushel.

* U.S. corn and soybean conditions remain historically high, despite concerns about heavy rain in the northwestern Corn Belt flooding some crop fields and damaging young plants. (Reporting by Christine Stebbins)

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