Corn export premiums ease at US Gulf Coast

Corn export premiums at the US Gulf Coast eased on Wednesday amid dull demand and sinking CIF barge market values, traders said. Elevated US corn prices, increased competition from feed wheat and cheaper corn from South America keeping US demand muted, traders said.
Spot CIF corn barges late on Wednesday were bid 43 cents per bushel over CBOT March futures after slipping as low as 42 over, the lowest spot basis in two months. December FOB basis offers were 57 over, down 3 cents. Private exporters sold 116,000 tonnes US corn to unknown for 2010/11, USDA showed on Wednesday. Chinese Commerce Ministry said agricultural imports would rise in 2011 as China rebuilds depleted reserves. No details given on targeted commodities or volumes.
Traders said corn may be one of the targets as supplies in China's government stocks believed to be below one month's worth. Purchases from the United States would likely be gradual, starting after the Chinese New Year in early February. US soyabean export premiums fell on Wednesday amid weak demand from China for old-crop cargoes and pressured by lower CIF basis values, traders said. Some Chinese importers locking in new-crop US supplies for shipment starting next autumn. USDA on Wednesday reported private sales of 110,000 tonnes for 2011/12.
Global soyabean demand increasingly shifting to South American supplies. Lack of demand weighed on CIF values on Wednesday and bids were scarce for nearby shipments. CIF December barges traded as low as 76 cents a bushel over CBOT January futures, down from 80 over late Tuesday, traders said. January FOB basis offers fell to 76 cents over CBOT March, down 2 cents from Tuesday. Wheat export premiums were steady to firm, with soft red winter wheat values supported by tight supplies and hard red winter wheat offers underpinned by solid demand for high-protein wheat, traders said. Iraq bought 250,000 tonnes US and Australian wheat via a tender, including 100,000 tonnes HRW, traders said. The purchase still needs ministerial approval.