Brz Soybean and corn Markets: Premiums for corn and beans in Brazil will end the week with strong loses. For corn, the drop till Thursday was 15 cents per bushel for July shipments. In Argentina trades reported at -35n on Upriver, which is equivalent to -10n for a cargo in Santos. The drop is due to selling pressure from Argentina and lower origination costs in Brazil – replacement cost FOB. Futures rallied, but prices in BRL per sack did not change much – basis in the interior fell. This is mainly due to the lack of space and rush for logistics – many farmers are still trying to sell for June shipment. The replacement cost is around -20/-25n FOB. This means that there is margin in origination.

For soybeans it is the same story. Futures climbed, but the flat price in BRL per sack didn´t changed much. The result is the fall of the basis in the interior. Allied to this, truck freight fell for some routes and sea freight remains heavy. Putting it all together, the fundamentals on the CFR basis fell sharply yesterday. In the week, the July premium accumulates a drop of 60 cents per bushel in FOB and 45 cents in CFR. For August shipment, bids retreated from +100n last Friday to +55n by Thursday afternoon (Brz time).

The sharp drop for premium in Brazil is beginning to open up the possibility of new soybean sales to processing plants on the US East Coast and more corn sales to traditional US buyers in the Caribbean and South America on the Pacific Coast – Soybean premium for a Cargo in Barcarena port at -65n (trade level) and Premium FOB USG LH July at +80n, same spread FOB/FOB during march, when Perdue purchased Brz sb.

CFR Market: Rumors of trades for July at +40n ystd afternoon, way below last week highs at +85n. For August there were rumors of trades at +60n ystd afternoon. The week started with offers for Aug at +100n. Yesterday afternoon, there were offers for Aug at the end of the day at +55n. In general, the offers indications for July and for August are going down, in line with the fall of origination costs in Brz.
RMB offshore at 7,07 – the high of the week was 7,139. Wheat prices in Henan province up 40 RMB per ton DoD and 140 RMB WoW – JCI.
Sinograin sold 30.3% of the 28,441 tons auctioned on Friday.

Soybeans CFR China (Brazil)

July 45/40n vs 30n – Rumors tdd at 40n (ystd afternoon) 
August 65/60/55n vs below 50n – rumors tdd at 60n (ystd afternoon)         
Feb 24 118h vs ??        
Mar 24 85/80h vs ?? – tdd at +78h (Wednesday)                              
Apr 24 75/70k vs ??    - Traded at +80k (Thursday) 

Soybeans CFR China (USG) – Replacement as reference

FH Oct 262x vs
LH Oct 242x vs
FH Nov 241x vs
LH Nov 236x vs
Dec 233x vs

Soybeans CFR China (PNW) – Replacement as reference

FH Oct 259x vs
LH Oct 254x vs