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CIF/FOB Gulf Grain-Soy, corn barge basis eases as harvest gets closer

CIF/FOB Gulf Grain-Soy, corn barge basis eases as harvest gets closer

Reuters · 07/27/2022 19:10
CIF/FOB Gulf Grain-Soy, corn barge basis eases as harvest gets closer

- Basis values for soybean barges loaded in July and shipped to the U.S. Gulf Coast for export fell sharply on Wednesday, reflecting eroding demand for pricey old-crop soybeans as the start of the -crop harvest approached in southernmost production areas, traders said.

* Declining costs for barge freight added pressure. Spot barges on the Illinois River were offered on Wednesday at 450% of tariff, down from 460% a day earlier. BG/US

* River levels on the Mississippi River south of St. Louis were rising following heavy rains this week, allowing heavier loadings on barges, brokers said.

* CIF Gulf soybean barges loaded in July traded at 130 cents over Chicago Board of Trade (CBOT) August futures SQ2 and were re-offered at 130 cents over futures, down about 19 cents from Tuesday's last offers. Bids for July barges were unquoted.

* CIF soy barges loaded in August traded at 98 and 95 cents over CBOT August futures, with offers falling to 97 cents over futures. FOB export premiums for August soybean loadings held at around 155 cents over futures.

* CIF corn barges loaded in July traded at 165 and 160 cents over CBOT September corn CU2 futures and were re-bid at around 155 cents over futures, down 5 cents from Tuesday's last bid. Export premiums for August loadings held steady at around 170 cents over futures.

* Ahead of Thursday's weekly export sales report from the U.S. Department of Agriculture, traders expected the government to report U.S. corn sales in the week ended July 21 at 200,000 to 925,000 tonnes (old and crop years combined).

* Traders expected old-crop soybean sales for the week to range from cancellations of 200,000 tonnes to sales of 300,000 tonnes, and -crop soybean sales of 100,000 to 500,000 tonnes. Wheat sales were seen at 250,000 to 625,000 tonnes.

* In Turkey, Defence Minister Hulusi Akar unveiled a center in Istanbul to oversee the export of Ukrainian grains after a landmark U.N. deal last week, with the first shipment expected to depart from Black Sea ports within days.

* Egypt canceled contracts for a total of 240,000 tonnes of Ukrainian wheat that were booked by its state grains buyer for February and March delivery but loaded due to Russia's invasion of Ukraine, two people with knowledge of the matter said.

(Reporting by Julie Ingwersen)

((Julie.ingwersen@thomsonreuters.com; 1-313-484-5283; Reuters Messaging: julie.ingwersen.thomsonreuters.com@reuters.))

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

Corn prices page:   cpurl://apps.cp./cms/?pageid=corn-cash-market
Wheat prices page: cpurl://apps.cp./cms/?pageid=wheat-cash-market
U.S. barge freight BG/US
U.S. export sales estimates USDA U.S. grain export summary GRA/U Brazil soybean export prices SYBS Brazil corn export prices SYBX Argentina grain prices GRAIN/ARG Russia grain prices GRAIN/RU