Corn and wheat export premiums steady at US Gulf Coast

Export premiums for corn and wheat at the US Gulf Coast were mostly steady on Friday amid slow demand, while soyabean export premiums were steady to firmer, rising in tandem with CIF basis values, traders said. US Gulf spot corn prices remained at a large premium to South American prices, despite declining crop prospects in Argentina and southern Brazil due to drought.
Gulf prices were $15 to $20 a tonne FOB above Argentine corn, traders said But some demand has already switched to the US Gulf from Argentina because of damage from dry weather, traders said. The corn will likely be for shipment during the summer, not for nearby delivery, they said.
Analytical firm Informa Economics on Friday lowered its forecast for Argentina's 2011/12 corn crop to 24 million tonnes, down 3 million tonnes, trade sources said. Brazil's crop was cut 2 million tonnes to 61 million tonnes. USDA expected to also cut South American production, as well as US yields and production, in a crop report next Thursday.
US corn export sales last week were below trade forecasts as rising prices discouraged buying while competition from cheaper feed wheat and corn from other suppliers continued to hurt demand. Soyabean export premiums firmed on Friday, tracking increases in CIF values, although demand for Gulf supplies was mostly quiet, traders said.
Poor Chinese crush margins limited spot soyabean demand from the top importer, traders said. South American prices were more competitive in deferred delivery positions. Wheat export premiums at the US Gulf Coast were little changed amid muted export demand, traders said.
Egypt's GASC bought 120,000 tonnes of French wheat, 60,000 tonnes Ukrainian wheat, and 60,000 tonnes of optional Russian or Kazakh wheat via a tender on Friday. Prices for US soft red winter delivered to Egypt were about $17 per tonne higher than winning bids.