CIF/FOB Gulf Grain-Corn, soy basis bids dive on rising spot supplies as big harvest awaited
CHICAGO, July 29 (Reuters) - Basis bids for corn and soybeans shipped by barge to U.S. Gulf Coast export terminals were mostly lower on Tuesday on ample supplies in the river market and expectations for large U.S. harvests this autumn.
More farmers are hauling corn and soybeans to river elevators for loading onto barges as growers clear out storage space for the upcoming harvest, a broker said. Spot corn demand from exporters has been very strong, but available grain has been adequate enough to fill those needs, he said.
The U.S. Department of Agriculture lowered its corn condition rating for the most recent week to 73% good to excellent, down 1 percentage point from a week earlier. The corn rating remains at a nine-year high for this time of year, which suggests the harvest will still be very large. Meanwhile, soy crop condition ratings rose 2 points in the latest week to 70% good to excellent.
Soybean export demand was slow as Brazilian prices are cheaper and as top importer China remained out of the U.S. market. China has not booked any new-crop U.S. soybean purchases to date, the slowest start to its U.S. purchasing program in 20 years, according to USDA data.
Talks between U.S. and Chinese officials in Stockholm ended on Tuesday with an agreement to seek an extension of their 90-day tariff truce that expires on August 12. No major breakthroughs were announced, but U.S. Treasury Secretary Scott Bessent called the meetings "very constructive."
CIF Gulf corn barges loaded in July were bid 10 cents lower at 78 cents over Chicago Board of Trade September CU25 futures. August corn barges were bid at 81 cents over futures, down 9 cents.
FOB export premiums for corn shipped from the Gulf in August were flat at 105 cents over September futures.
CIF Gulf soybean barges loaded in July traded at 91 cents over CBOT August SQ25 futures, down 3 cents from earlier bids of 94 cents over futures.
FOB export premiums for soybeans shipped from the Gulf in August were down 5 cents at about 105 cents over August SQ25 futures.
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