CIF/FOB Gulf Grain-Soybean basis eases on higher futures, slow export demand
CHICAGO, March 18 (Reuters) - Spot basis bids for soybeans shipped by barge to U.S. Gulf Coast terminals eased on Wednesday on weakening freight costs, seasonally slow export demand and firmer futures values, traders said.
U.S. soybean export sales have slowed as global buyers are increasingly turning to cheaper Brazilian supplies. Offers for spot shipments from Brazil are at least $1.10 per bushel cheaper than U.S. Gulf soybeans on a FOB basis.
Soybean traders are awaiting a possible increase in Chinese buying ahead of a summit between U.S. President Donald Trump and Chinese President Xi Jinping, which is expected in five or six weeks.
Chicago Board of Trade soybean futures Sv1 rose on Wednesday as rising crude oil prices lifted soyoil values.
Spot barge freight costs have come under pressure as river shipping conditions improved following recent rains. BG/US
CIF Gulf soybean barges loaded in March traded 2 cents lower at 61 cents over Chicago Board of Trade May SK26 soybean futures. April soybean barges traded 2 cents lower at 68 cents over futures.
FOB export premiums for April soybean loadings were down 10 cents at 100 cents over futures.
CIF corn basis bids were mostly steady to firm on Tuesday, supported by good demand from exporters and a slowdown in farmer sales following a recent futures price drop.
CIF Gulf corn barges loaded in March were bid a penny higher at 81 cents over CBOT May CK26 futures after trading as high as 83 cents over futures a day earlier. April corn barge bids were also a penny higher at 81 cents over futures.
Corn export premiums for April loadings at the Gulf were down 5 cents at 95 cents over futures.
The U.S. Department of Agriculture is due to release export sales data for the week ended March 12 early on Thursday. Analysts surveyed by Reuters expect net old-crop corn sales as high as 1.8 million metric tons and old-crop soybean sales of up to 800,000 tons.
