US FOB Gulf wheat basis values were steady to firm after the close on Tuesday with Egypt's GASC tendering for September offers overnight while corn and soyabean basis offers were steady to lower, receding from the gains of the last week, traders said. GASC is seeking offers for September 1-10 loading in its first tender since July 9 when it bought 240,000 tonnes of Romania wheat for last half August shipment.
With the US winter wheat harvest pushing toward completion SRW prices are competitive, traders said, but few expected offers to go to GASC. The lack of US offers was tied to several factors including some quality issues with the wet harvest as well as CBOT board spreads, which are encouraging storage in the domestic market and tightening harvest supplies.
FOB SRW September offers were up 7 cents at 107 over CBOT September futures after the close, with October offered at 130 cents over CBOT December, up 15 cents. HRW FOB offers at the Texas Gulf were unchanged for September at 155 over KCBT September futures but offers for O/N/D were all 10 cents higher at 185 cents over KCBT December.
Wheat traders echoed the sentiment of corn and soyabean traders that tight logistics underpinned all FOB values, citing China's huge export program centred on soyabeans into Q4 and beyond which firmed up both rail and barge freight across the board. The continued interest for soyabeans from China was carrying over to the cash market for August when early harvested soyabeans out of the southern US would be available for processors and exporters. CIF soyabeans quotes were strong on Tuesday afternoon and CIF corn was steady.
