Corn bids drop, soy barge bids remain firm
Exporter demand and a rise in barge freight costs caused soybean barge bids to strengthen on Friday, whereas many U.S. maize sales to China caused corn barge bids to drop slightly, according to dealers.
The U.S. Department of Agriculture (USDA) announced another 204,000 tonnes of private sales of U.S. grain to China on Friday. With the most recent agreement, 2.752 million tonnes of grain have been confirmed to have been sold to China as of mid-March.
Prior to China’s buying frenzy, benchmark corn futures on the Chicago Board of Trade (CBOT) had reached a seven-month low on March 10. According to analysts, Chinese consumers found U.S. supplies appealing due to the price drop, uncertainty around exports from a rival source, Ukraine, and improved shipping conditions on the Mississippi River.
Friday saw a little increase in freight costs on Midwest rivers, which boosted CIF barge bids. Traders also noticed a higher demand for freight through early April on the Illinois River and the Mississippi River at St. Louis. Empty barges on the Ohio River were offered Friday at 475% of the tariff, up from 450% on Thursday.
The CIF Gulf soybean barge bid price for loads in March rose by 2 cents from Thursday, coming to 105 cents over the May CBOT futures (SK3). Barges for April soy were offered at 96 cents over futures. The FOB basis offered for the loadings of April soybean exports was around 116 cents over futures, up 4 cents from Thursday, and the offer for the loadings of May remained constant at 110 cents over futures.
There were persistent rumors that soybeans from Brazil were being imported for shipment to the US East Coast. Barges of CIF maize, loaded in March and offered for sale, were priced at 91 cents over the CBOT May (CK3) futures on Friday, one penny lower than what was quoted on Thursday. For maize export loadings in April, FOB basis offers remained at roughly 103 cents above futures, and loadings in May were provided at about 100 cents over futures.
According to an article in the Russian business weekly Vedomosti, Moscow may suggest temporarily stopping wheat and sunflower exports due to declining prices. There is no such strategy, according to sources who spoke to Reuters; instead, the government wants exporters to offer prices high enough to compensate farmers’ production costs.
As soy oil prices rise, palm oil prices also rise
Low York Hong, the head of futures broking at AmInvestment Bank, stated that palm oil prices have increased during the opening Asian session, mirroring soybean oil’s rally on Friday on the Chicago Board of Trade.
The two oils are frequently traded together as they are utilized in comparable goods. While Southern Peninsula Palm Oil Millers Association recorded reduced CPO production for March 1-20, cargo surveyors ITS and Amspec reported increased palm-oil exports for March 1–25.
- CPO futures may find support at MYR3,500 and below.
- Low places support at MYR3,482 and resistance for CPO futures at MYR3,613.
- The June delivery Bursa Malaysia Derivatives contract is MYR38 more expensive, at MYR3,550 per ton.