Soybean basis slumps on weak demand, lower freight

Basis bids for soybeans shipped by barge to the U.S. Gulf Coast were weaker on Thursday on seasonally slowing export demand and softer barge freight rates, traders said.

* CIF corn basis bids were also weaker.

* Spot freight rates on Midwest rivers fell by up to 25 points of tariff on Thursday on ample supplies of empty barges and limited demand from shippers.

* Cheaper Brazilian new-crop soy shipments are undercutting demand for U.S. soybeans, traders said.

* Net U.S. soybean export sales last week totaled 155,300 tonnes for 2022/23 shipment, and a net negative 48,200 tonnes for 2023/24 due to a purchase cancellation by China, the U.S. Department of Agriculture (USDA) said in a weekly report. Both were below trade estimates.

* Weekly corn export sales were in line with trade estimates at 1.25 million tonnes for 2022/23 shipment and 26,200 tonnes for 2023/24.

* CIF Gulf April soybean barges traded 6 cents lower on Thursday at 90 cents over CBOT May futures (SK3) and were re-bid at 88 cents over futures. May barges were bid 5 cents lower at 90 cents over futures.

* FOB basis offers for April soybean export loadings were flat at 120 cents over futures, and May offers held at 110 cents over futures.

* Corn CIF barges loaded in April at 85 cents over CBOT May (CK3) futures while May barges traded at 83 cents over futures. Both were down 4 cents from bids late on Wednesday.

* FOB basis offers for April corn export loadings were unchanged at 103 cents over futures. May corn premiums were flat at around 102 cents over futures for loadings in the first half of the month and 98 cents over for last-half loadings.

* Markets will be closed on Friday for the Good Friday holiday.