Corn export premiums steady at US Gulf Coast

Corn export premiums at the US Gulf Coast held steady on Friday on solid demand as forecasts for reduced Argentine production and exports suggested prices were well supported at current levels, traders said. Analytical firm Informa Economics slashed its Argentine corn crop forecast on Friday. A USDA attache in the country gave a lower production and export outlook on Thursday.
Several regular corn importers, including South Korea, Japan, Taiwan and Mexico, have stepped up feed grain purchases from the United States and other suppliers this week. South Korean feedmakers bought two cargoes of optional-origin corn and one of US corn on Friday. South Korea bought several cargoes of white wheat from the US West Coast earlier this week.
Taiwan's MFIG bought a cargo of Argentine corn via a tender on Friday. US soft red winter wheat export premiums were steady to firm on Friday while hard red winter wheat premiums were flat to weaker, traders said. Reduced wheat exports from the Black Sea region and Europe following very active shipments early in the marketing year likely to bolster US wheat exports, traders said. Exports to Asia have already grown and demand from Middle East and north Africa may also rise.
Russia sees no need to restrict grain exports in April, raises grain export forecast for 2011/12 by 12.5 percent. Ukraine's State Railway Administration banned its grain railway cars from leaving the country, effectively halting railway grain exports. US grain traders said the move resembled steps taken last year that ultimately led to a shutdown of export markets.
US soyabean export premiums at the Gulf Coast held steady, underpinned by tight spot supplies but capped by low demand at the Gulf. Much of the recent US soyabean export sales have been for PNW shipments, traders said. Brazilian new-crop export premiums firmed this week on lower-than-anticipated early harvest yields, reports of crop damage and sprouting. The firmer prices steered demand for near-term shipments to the United States. Taiwan's BSPA bought a cargo of Brazilian soyabeans via a tender on Friday.