Corn export premiums at the US Gulf Coast were near steady on Friday, capped by slow export demand, but the market had a firm tone as high water closed the Mississippi River, halting the flow of grain from the Midwest, traders said. A sharp drop in futures prices this week could attract fresh buying interest, but many importers appear to be delaying purchases to see if prices sink further, traders said. July futures fell 9.3 percent this week.
The Coast Guard closed a five-mile stretch of the Mississippi River in southern Missouri on Friday for eight days due to high water. Shipping restrictions in place elsewhere. Exporters meeting their loading needs with grain stocks on hand at the Gulf, but a prolonged river shutdown could lead to a slowdown in Gulf loadings. USDA attache pegs Argentina corn production in 2010/11 at 21 million tonnes, below the last official USDA forecast for 22 million. Attache pegs 2011/12 output at 26 million tonnes.
Hard and soft red winter wheat FOB basis offers held steady amid quiet demand ahead of the upcoming new-crop harvest in the northern hemisphere that will replenish supplies and may drag down prices, traders said. A sharp decline in prices earlier this week made old-crop US wheat more competitive with other origins, but new-crop grain was not competitive, traders said.
Russian Prime Minister Putin said Friday that the country may lift its grain export ban if it has sufficient stocks, repeating an earlier statement. But he did not say when it may happen. Restart of cheaper exports from Russia would dent demand for cosstlier US wheat, traders said Demand for US soyabeans remained seasonally slow, with crushers in top buyer China struggling with low margins and mostly buying small volumes from South America.
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