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US Gulf FOB corn and soyabean basis offers were mostly steady on Wednesday, with fresh Chinese interest supporting nearby soya prices, traders said. Barge freight rates were higher on the Mississippi, Ohio and Illinois rivers amid tight supplies. Offers for this week rose 10 percentage points at St. Louis on the Mississippi River, 20 points on the Illinois and 5 points on the Ohio.

"There are not many empties because fog is delaying movement at the Gulf," a freight broker said, adding that high water on the Illinois River was hampering barge traffic.

"Barges cannot make it through some bridges (on the Illinois River) because of high water," he said, adding that some vessels were stranded, waiting for water levels to fall.

Traders said the high water on the Illinois River was helping to strengthen corn basis values, adding that grain movement was being limited by the flooding.

Hard and soft red winter wheat basis offers were lower, weighed by a lack of fresh export demand and ample supplies. Prices were also lower in the CIF barge market.

"Farmers have been selling wheat during the rallies, while there's very little new demand," a trader said.

Another trader said HRW wheat basis values were pressured by improved rail car deliveries of the grain. Traders had said deliveries were delayed by up to 30 days at some locations.

Rumours that China had purchased 500,000 to 1 million tonnes of wheat from Argentina remained unconfirmed.

Copyright Reuters, 2005


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