Wheat export premiums steady at US Gulf

US wheat export premiums at the US Gulf Coast held steady on Friday in quiet dealings, with the market underpinned by strong demand prospects mostly for high protein wheat such as hard red winter, traders said. Wheat traders monitoring protests in North Africa, specifically in Egypt. But traders said it was too soon to say if grain purchases by the import-dependant region could be temporarily derailed due to political unrest.
Rising US wheat prices crimped demand this week following very strong sales at mid-month. But some upcoming large international tenders expected to result in at least some US wheat purchases. Bids in a tender by Iraq for at least 100,000 tonnes were due next Wednesday. US hard red winter wheat seen competitively priced in the tender.
Wheat traders also expecting a large tender from Saudi Arabia as the major buyer has not purchased wheat on the world market in several months. Talk that Saudi may tender by next Wednesday to buy 500,000 tonnes, half of it higher protein wheat and half lower protein, traders said.
Soyabean export premiums at the US Gulf were steady to firm, with solid demand for nearby shipments of US soyabeans underpinning values, traders said. Some demand inquiries by China reported for Gulf soyabean shipments in March and April, but no sales confirmed. Old-crop US soya sales to China from the Pacific Northwest reported earlier this week as PNW prices were lower than Gulf.
Demand from top soya importer China expected to wane next week as markets there close for Lunar New Year celebrations. US corn export premiums were firmer on Friday and higher in the week, supported by rising CIF values and moderate export demand, traders said.
US corn demand to non-routine buyers dampened by elevated prices and ample available supplies of feed wheat, but regular customers such as Japan and Mexico have been filling needs on price dips, traders said. Private exporters sold 151,638 tonnes US corn to Japan for 2010/11 delivery, USDA said on Friday. Port strike in Argentina has not impacted corn and soyabean markets to date, but traders monitoring developments as the strike was expected to extend into next week.