Export premiums for corn shipped from the US Gulf Coast were flat to lower on Wednesday on ample supplies and muted demand, while wheat and soyabean premiums were flat, traders said. A strong US dollar weighed on FOB basis offers by increasing import costs for those holding other currencies. The dollar index rose to a 14-year high on Wednesday.
A weaker Mexican peso over the past week has limited new demand for US grain, but duty-free trade and cheap rail freight will keep Mexico buying from its northern neighbour. The US Department of Agriculture is due to release its weekly export sales report on Thursday, data which will include two days of trade after the US election. Analysts expect corn sales to be below the prior week and soyabean sales to be above the previous week.
China continues to book US soyabean shipments, mostly for near term shipment amid profitable domestic crush margins. The USDA on Wednesday confirmed private sales of 165,000 tonnes to China, the third straight day with a sales announcement. US wheat was included in a 580,000-tonne tender purchase by Algeria.
November export offers at the Louisiana Gulf were not well defined as loading capacity was mostly sold out. December US soyabean shipments were offered at about 63 cents a bushel over Chicago Board of Trade January futures, which closed 3-3/4 cents lower at $9.85-3/4 a bushel.
December corn shipments were offered at 65 cents over CBOT December futures, which closed 3 cents lower at $3.38-1/2 a bushel. Offers for December soft red winter wheat shipments were about 95 cents over CBOT December futures, which settled 2 cents lower at $3.97 a bushel. Spot hard red winter wheat cargoes were offered at 125 cents over December futures, which closed 4-1/2 cents lower at $4.03-1/2 a bushel.
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