Barge traffic remains restricted on portions of the Mississippi and Illinois rivers due to high water, which slowed deliveries of corn and soyabeans to Gulf export terminals and supported CIF basis values, traders said. Chicago Board of Trade grain and soyabean futures fell on Monday ahead of US Department of Agriculture monthly and quarterly reports due on Tuesday. Analysts expect the USDA to cut its corn export forecast and increase corn ending stocks due to slow demand for US shipments to date.
Export sales of US soyabeans have been average at best and corn demand has been below-average amid ample global supplies, elevated prices and a strong dollar. The USDA on Monday confirmed private sales of 120,000 tonnes of US soyabeans to China and 248,000 tonnes to unknown destinations, both for 2015/16 delivery. The USDA also confirmed private sales of 152,400 tonnes of US corn to unknown destinations for 2015/16 delivery.
Chinese importers booked several cargoes of US soyabeans late last week, mostly for shipment from the Pacific Northwest, traders said. The USDA announcement likely confirmed those sales, they said. Agriculture officials in China said the country must cut corn prices to boost sales from government warehouses. Burdensome state stocks have curbed China's corn imports in recent years.
FOB Gulf soyabeans loaded in late January were lightly offered at about 87 cents a bushel over CBOT March futures, which closed 4 cents lower at $8.61-1/4 a bushel. January corn offers were around 63 cents over CBOT March futures, which ended 5-1/4 cents lower at $3.51-3/4 a bushel.