Soybean barge bids firm, corn bids soften

Mar 24, 202323:36 UTC

Basis bids for soybeans shipped by barge to the U.S. Gulf Coast firmed on Friday on exporter demand and an uptick in barge freight costs, while corn barge bids eased slightly following a series of U.S. corn sales to China, traders said.

* The U.S. Department of Agriculture (USDA) confirmed more private sales of U.S. corn to China, announcing another 204,000 tonnes on Friday. The latest deal brought the total amount of corn sales to China confirmed since mid-March to 2.752 million tonnes.

* Chicago Board of Trade (CBOT) benchmark corn futures ZC1! had notched a seven-month low on March 10 before China began its buying spree. The price drop, combined with uncertainty about exports from rival supplier Ukraine and improved shipping conditions on the Mississippi River, made U.S. supplies attractive to Chinese buyers, analysts said.

* Freight costs ticked higher Friday on Midwest rivers, supporting CIF barge bids. Empty barges on the Ohio River were offered Friday at 475% of tariff, up from 450% on Thursday, and traders also noted increased demand for freight through early April on the Illinois River and the Mississippi River at St. Louis.

* CIF Gulf soybean barges loaded in March were bid at 105 cents over CBOT May futures (SK3), up 2 cents from Thursday. April soy barges were bid steady at 96 cents over futures.

* FOB basis offers for April soybean export loadings were around 116 cents over futures, up 4 cents from Thursday, and May offers were steady at 110 cents over futures.

* Rumors persisted about Brazilian soybeans being purchased for export to the U.S. East Coast.

* For corn, CIF barges loaded in March were bid at 91 cents over CBOT May (CK3) futures, down a penny from Thursday.

* FOB basis offers for April corn export loadings held at around 103 cents over futures, and May loadings were offered around 100 cents over futures.

* A report in Russian business newspaper Vedomosti said that Moscow could recommend a temporary halt in wheat and sunflower exports in response to falling prices. Sources told Reuters there was no such plan, but that the government wants exporters to pay sufficient prices to cover farmers' production costs.