Corn export premiums at the US Gulf Coast were steady to firm on Thursday, rising in tandem with a higher CIF basis, as the recent plunge in futures prices attracted fresh demand, traders said. Most of the demand for corn was domestic, although export injuries have increased modestly as regular US corn importers booked some additional sales on the price break.
Top buyer Japan well supplied through the end of August, South Korea well supplied through late August, a trader said. Rumours of Chinese demand for US corn circulated as futures bounced off of the day's lows, but trade sources could not confirm any sales.
Traders said sales to China were unlikely at the moment as China's crop weather was very good, suggesting a large crop which would limit import needs. Also, margins for imports were negative for non-government buyers who are unable to waive import duties, traders said.
US corn export sales were below trade forecasts last week, but likely rebounded modestly this week as prices extended their decline. Still, cheaper alternative feed grains continue to hurt demand for corn. Wheat export premiums at the US Gulf were about steady on Thursday after firming earlier in the week on improved demand, traders said.
Egypt's GASC bought two cargoes of US soft red winter wheat for July 21-31 shipment, along with a cargo each of Australian and French wheat. Looming resumption of Russian wheat exports from July 1, when a nearly year-old grain export ban will be lifted, seen hurting demand for US wheat in coming months, traders said. Russia may set an export duty on grain if milling wheat prices reach 6,500 roubles, or $231.80 per tonne, which is about $35 a tonne below current prices.
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