FOB US Gulf grain basis values held on Tuesday on tight supplies and high freight costs given a long winter of logistical snarls moving commodities by barge and rail to export terminals, exporters said. While soyabean basis offers were unchanged, old-crop Chicago Board of Trade futures fell on concerns about Chinese demand.
CBOT May closed 5-3/4 cents lower at $14.13 a bushel, falling 44-3/4 cents since Friday's close. Exporters were uneasy that China might cancel US purchases, especially after talk on Monday that China cancelled or rolled back purchases of some 15 cargoes of Brazilian soya given poor crush margins. CBOT old/new-crop soya spreads reflected market jitters. The July-November soya spread weakened on Tuesday, with new-crop November gaining 16 cents on old-crop July. Traders noted Gulf CIF soyabean values fell 2 to 8 cents Tuesday afternoon. Corn values were also unchanged but fresh interest was quiet as the jump in prices, some 20 cents a bushel since Friday, cooled demand for US corn, exporters said. CBOT May corn closed 5 cents higher at $4.83-1/4 on Tuesday.
Additionally, South American freshly harvested crops will soon be moving into the export pipeline. Hard red winter wheat basis offers held firm, against the rally in US wheat futures. Chicago May wheat ended up 18-1/4 cents at $6.59; Kansas City wheat closed 17-1/4 higher at $7.28-1/2. Traders late Tuesday were still trying to pin down what triggered the rally in wheat futures. Supportive was a statement by Ukraine's agriculture minister that most of the spring grain area in Crimea would likely not be planted due to the turmoil there. There also was speculation that USDA may release a report on Ukraine Wednesday.
