US FOB Gulf HRW wheat bids fall on lackluster demand

Basis bids for hard red winter wheat shipped by rail to the US Gulf Coast fell about 10 cents per bushel on Tuesday while offers in the ocean market also weakened amid lackluster export demand, traders said. Wheat buyers were on the sidelines as K.C. HRW wheat futures dropped to a roughly one-month low. "World buyers are waiting for the board to stop breaking. The phone just isn't ringing," said a US wheat export trader.

The basis for other US wheat varieties and for corn and soyabeans was mostly steady to narrowly mixed amid limited demand. Corn and soyabean buyers were watching US weather that will determine yields at the autumn harvest, and were sourcing much of their near-term needs out of South America.

The US Department of Agriculture on Tuesday announced a sale of 100,000 tonnes of US corn to Colombia, after announcing a sale of 150,000 tonnes on Monday. The Mississippi River reopened to vessel traffic on Tuesday following a barge collision just north of St. Louis that forced the closure of the river for about 14 hours, the US Coast Guard said.

CIF basis bids for soyabeans loaded in August were about 52 cents over the Chicago Board of Trade August futures contract. CIF corn bids were for July and August were bid 23 cents above the CBOT September contract. CIF hard red winter wheat bids were 110 cents over the K.C. September contract for spot shipments while soft red winter wheat bids held at 40 cents over CBOT September futures.

(Source : reuters)