Basis bids for soybeans shipped by barge to the U.S. Gulf Coast for export were flat to lower on Friday as freight costs eased for a second straight day and river shipping conditions improved, traders said.
Rising water levels on the Mississippi River and its tributaries allowed shippers to haul more grain per barge. River navigation snarls earlier in the week due to foggy weather were also easing, shippers said.
Freight rates for January barges fell by 50 to 75 points of tariff for a second straight day on Friday as demand slumped for empty vessels for near-term shipment, barge brokers said.
Spot export premiums were flat despite easing CIF basis values. The values were underpinned by light demand for near-term U.S. shipments before newly harvested Brazilian corn and soybeans flood the market starting in February, traders said.
Chinese importers have made some price inquiries for February soybean shipments from the U.S. Gulf Coast, a trader said.
Grain traders are looking ahead to the USDA’s January crop supply-and-demand report due next Thursday.
CIF basis bids for soybean barges loaded in January fell 7 cents to 110 cents over Chicago Board of Trade March futures (SH3). February barges were bid a penny lower at 104 cents over futures.
FOB offers for soybeans loaded at the U.S. Gulf in January held at 150 cents over March futures.
CIF corn barges loaded in January and in February were bid 2 cents lower at 90 cents over CBOT March futures (CH3).
Export premiums for January corn loadings were unchanged at 125 cents over March futures.
