October 24, 2007

 

Corn, soy barges to Gulf steady amid sluggish demand

 

 

US CIF (Cost, Insurance and Freight) corn and soy barge basis values held steady on Tuesday (October 23) morning after corn fell slightly the previous day due to slowing export demand and more elevators loading barges for the Gulf, traders said.

 

Hard and soft red winter wheat values held steady with a firm tone due to talk that Russia may soon slap a 30 percent tariff on its wheat exports, which would benefit US exports.

 

Russia has already announced it will enact a 10 percent tariff in mid-November, which has exporters racing to beat the deadline.

 

Moscow-based independent research organization SovEcon on Tuesday said Russia's wheat exports in October may reach a record high of 2.2 million to 2.4 million tonnes.

 

If Russia stops exporting wheat, the United States will be the world's only major supplier through the end of the year.

 

Volatile futures prices and freight rates were keeping most wheat buyers on the sidelines. Export sales overnight were limited to South Korea buying 25,000 tonnes of US wheat, mostly soft white wheat.

 

In its weekly tender Japan was seeking 20,000 tonnes of Australian wheat.

 

CIF corn basis values held steady after dipping slightly on Monday due to slowing export demand and elevators loading barges with more corn.

 

Corn for October shipment traded at 60 cents a bushel premium to CBOT December on Monday and was re-bid for the same price on Tuesday morning. Last week, the corn traded at 62 cents over.

 

Corn for November shipment traded at 64 cents over on Monday and was re-bid at 62 cents over. Last week, November corn traded for as much as 66 cents over.

 

The Philippines passed on a tender to buy 70,000 tonnes of corn due to high prices and will re-tender in November.

 

CIF soy held steady amid routine export demand.

 

Soy for November shipment traded at 45 cents a bushel premium to CBOT November on Monday and were rebid at 38 cents over on Tuesday.