CIF Gulf Grain-Nearby soybean basis continue surge on processor demand

CHICAGO, Aug 22 (Reuters) – U.S. CIF Gulf soybeans nearby basis markets were sharply higher, continuing a trend this week, as processors encouraged farmers to sell any remaining beans left from last year’s harvest to meet their immediate crush needs, traders said on Friday.

A slower-than-expected start to the southern harvest, typically the first new-crop beans available to processors and exporters, added to worries about sourcing soybeans.

The nearby CBOT soybean futures spread reflected sharply higher cash markets, with CBOT September trading at about a $1.15 premium to new-crop November early Friday.

CIF Gulf August soybean bids were up another 5 cents from late Thursday to 325 cents over November futures while offers were up 10 cents at 340 cents over futures. Basis bids for first-half September also jumped early Friday with the bid/ask at 210/222 cents up 10/12 cents over futures, traders said.

Decatur, Illinois processor held its spot soy bid at 310 cents over November futures after raising it 20 cents Thursday afternoon.

CIF Gulf corn basis values were slightly firmer as processors and exporters tried to spur more farmer corn sales. Processors led the charge in trying to source corn but exporters at the Gulf stayed competitive for fill-in needs, traders said.

CIF corn values for August loadings were up a penny, bid at 90 cents over and offered 93 cents over CBOT September futures. First-half September bids/offers were also up 1 cent at 88/91 cents over futures.

Soft red wheat basis bids were mixed with nearby offers up 1 cent while Nov-Jan values had a softer tone. Corn and soybean shipments tend to take top priority during the U.S. fall harvest season, so traders were building in premiums for customers wanting wheat in the coming months.

SRW CIF August bids were steady at 50 cents over CBOT September futures while offers were up 1 cent to 56 cents over futures. September bids were steady at 60 cents and offers were up 1 cent at 68 cents over CBOT September futures.

Traders were awaiting U.S. corn and soybean crop estimates from farm advisory ProFarmer following this week’s annual Midwest crop tour.

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