US Gulf soya basis offers have jumped by more than 10 cents per bushel over the past week as barge-delivered soyabeans were likely to be difficult to source in the coming weeks. The jump made PNW shipments more attractive. The Mississippi River between St. Louis and Cairo, Illinois, was forecast to drop to near-record lows this month, possibly halting most river navigation. Shipments from the Illinois River to the Gulf would also be impacted.
Exporters have been shipping soyabeans via rail to the Gulf or to barge loading locations downriver from the low water problem areas. But exporters may have to absorb losses to fill previously booked export sales with more expensive rail beans. The EU is increasing soyabean imports from the United States, Ukraine and Canada amid increasingly tight supplies from South America, oilseeds analysts Oil World said. Corn export premiums at the Gulf were flat to weaker, pressured by weak demand.
US Gulf corn prices were not competitive on the world market. Taiwan bought a cargo of Brazilian corn last week for early January shipment at a 65-cent-per-bushel discount to US prices. US wheat export premiums were mostly steady at the Gulf Coast. Soft red winter wheat prices were competitive in the world market but demand was minimal. Hard red winter wheat prices were uncompetitive but demand for hard milling wheat was solid. Iraqi tender to buy wheat on the world market closes this week. Traders said Canadian and Australian wheat appeared poised to capture the business.