Corn export premiums at the US Gulf Coast were mostly steady on Friday amid slow farmer selling and hopes for further purchases by China after large sales to the country this week, traders said. A steep drop in corn prices from late August peaks has attracted renewed demand from regular importers of US corn in Asia and Latin America and from emerging importer China.
Talk of further Chinese demand for corn following confirmed sales of 900,000 tonnes US corn this week could not be confirmed. Traders said China has been inquiring about prices and seeking to buy another 500,000 to 1 million tonnes. A 30- to 40-cent decline in futures prices from current levels would likely spur another wave of buying, one US analyst said.
Lack of farmer selling keeping supplies tight in the river market, underpinning CIF and FOB basis values. Soyabean export premiums at the US Gulf were mostly steady to firm, supported by good demand from top importer China and tight supplies due to slow farmer selling, traders said.
Limited elevation capacity in the US Pacific Northwest shifting more demand to US Gulf Coast shipments. US wheat export premiums at the Gulf Coast were mostly steady on Friday amid dull demand, with cheaper grain from rival suppliers undercutting export prospects for US wheat.
Comments
Comments are closed for this article.