Basis bids for soybeans and corn delivered by barge to U.S. Gulf Coast terminals firmed on Friday, reflecting rising costs for barge freight and slow grain sales by farmers, traders said.

Also, the basis for both crops firmed at a few domestic processing sites this week, prompting Gulf shippers to pay up a bit to compete for fresh supplies.

Freight costs ticked higher this week on Midwest rivers. Empty barges on the Mississippi River at Davenport, Iowa, were offered at 625% of tariff on Friday, up from 575% a day earlier. Offers also rose on the lower Ohio River but held steady on the Illinois River after firming earlier this week.

CIF Gulf soybean barges loaded in July traded at 103 cents over Chicago Board of Trade August (SQ25) futures and were re-bid at 100 cents over futures, up 3 cents from Thursday’s bid.

CIF August soybean barges also traded at 103 cents over futures and were re-bid at 102 cents over futures, up 6 cents from a day earlier.

For corn, CIF Gulf barges loaded in July were bid at 92 cents over CBOT September (CU25) futures, up 1 cent from Thursday, and August corn barges were bid at 91 cents over futures, also up a penny.

FOB export premiums for corn shipped from the Gulf in August were steady at around 105 cents over September futures.

FOB export premiums for soybeans shipped from the Gulf in August held at around 112 cents over August (SQ25) futures.

Indonesia is still negotiating details of its recently-reached trade deal with the United States after Washington lowered tariff rates on the Southeast Asian country, and is pursuing exemptions for its exports of palm oil and nickel, an official said.

Market players continue to closely monitor weather forecasts as the U.S. corn crop moves through its key pollination phase and soybeans continue to develop. Forecasts called for hotter temperatures in the Corn Belt next week but showers should limit stress on crops.
Source: Reuters