CIF/FOB Gulf Grain-Soybean basis values rise on firm demand, barge freight

CHICAGO, Dec 17 (Reuters) - Basis bids for soybeans shipped by barge to U.S. Gulf Coast terminals climbed on Wednesday as Chinese importers booked additional purchases for shipment into early 2026 and as barge freight rates remained firm, traders said.

• The U.S. Department of Agriculture confirmed a total of 323,000 metric tons of U.S. soybean sales to China and unknown destinations in a daily sales announcement on Wednesday morning. Traders said China's state-owned traders were back in the market for additional cargoes for shipment through March, but could not confirm sales volumes.

• Private Chinese importers continued to book purchases from Brazil, where new-crop supplies were offered at lower prices than U.S. shipments.

• Strong export demand also underpinned corn basis values. The USDA confirmed 177,055 tons in U.S. corn sales to Mexico, and a South Korean importer bought 268,000 tons, which traders said was likely to be shipped from the United States.

• Barge freight costs have edged higher this week amid concerns that low water on the Mississippi River and ice buildup on the Illinois River would disrupt shipping, traders said. BG/US

• Barge lines are already limiting drafts and tow sizes in some areas due to low water. The Mississippi River gauge at Memphis, a key choke point on the busiest shipping waterway, was at -6.75 feet on Wednesday afternoon and forecast to drop to -8.5 feet by Monday, according to the National Weather Service. The record low for the area of -12.06 feet was hit in October 2023.

• CIF bids for soybean barges loaded in December were 9 cents higher at 85 cents over Chicago Board of Trade January soybean SF26 futures, while CIF bids for January loadings were up a 4 cents at 95 cents over futures.

• FOB export premiums for soybeans loaded in January were 110 cents over January futures, while February export premiums were 105 cents over futures. Both were up 5 cents.

• CIF December corn barges were bid 3 cents higher at 73 cents over CBOT March corn CH26 futures, while January bids were 3 cents higher at 81 cents over futures.

• FOB export premiums for January corn shipments were about steady at about 96 cents over March futures.

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 LINKS

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/EST

U.S. grain export summary GRA/U

Brazil soybean export prices SYBS

Brazil corn export prices SYBX

Argentina grain prices GRA/ARG

Russia grain prices GRA/RU