Soyabean export premiums at the US Gulf Coast were steady to firm on Thursday as a rising CIF market lifted nearby values despite dull demand for shipments from the Gulf, traders said. Corn export premiums were also steady to higher on a firm spot CIF market, while wheat export premiums were level, traders said.
High water on Midwest rivers slowed barge tow movement and prevented grain barge loading in some areas, such as the lower Ohio River, traders said. The logistics problems tightened corn and soyabean supplies in the export pipeline, keeping the CIF basis inverted and underpinning nearby FOB premiums.
Export capacity at the Gulf is sold out through the first half of March. Last half March soyabean shipments are available, but prices were not competitive enough to attract new demand. US soyabean shipments to Asia from the Pacific Northwest were competitive with South American prices for May-June shipment periods, traders said.
Traders monitoring labour developments in Argentina after dock workers blocked two grain export terminals for a second day on Thursday to press pay demands. No market impact seen as Argentine harvest has not started yet. Gulf corn demand was routine on Thursday. Traders said inquiries from buyers have slowed this week with firmer prices and as top buyers have filled their near term needs.
US wheat demand was moderate following a flurry of sales in recent weeks which filled the immediate needs of many regular buyers and importers in the Middle East and North Africa. US wheat competitively priced in a tender by Iraq this week, but few other tenders outstanding. EU granted 244,000 tonnes in soft wheat export licenses this week. It was about half the volume issued last week, which some traders said suggested that supplies were winding down after a strong early season export pace.
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