Export Competition Keeps Corn, Soy Basis Stable

Basis bids for corn and soybeans destined for export via barge to the U.S. Gulf Coast remained largely unchanged on Thursday, indicating steady demand despite stiff competition from other suppliers.

• Export demand for U.S. crops faces challenges due to the availability of cheaper alternatives from competing exporters. Notably, China, the world’s largest soy importer, has shown limited interest in U.S. soybeans.
• According to the U.S. Department of Agriculture, soybean export sales for 2023/24 were 159,700 metric tons for the week ended Feb. 22, falling towards the lower end of analysts’ projections.
• Meanwhile, corn export sales for the same period were reported at 1,082,300 metric tons, aligning with market estimates.
• Soybean barges loaded in February were bid at approximately 70 cents over Chicago Board of Trade March soybean futures, maintaining stability. Similarly, March barge bids remained steady at 68 cents over futures.
• Offers for soybean basis for March shipments remained unchanged at about 80 cents over futures, while basis offers for April shipments slightly decreased by 4 cents.
• Corn barges for February and March were steady at 60 cents over CBOT March futures, with export premiums for March loadings edging up by a penny.