Wheat export premiums firmer at US Gulf Coast

Wheat export premiums at the US Gulf Coast were steady to firm on Friday as domestic consumption kept supplies in the export market tight amid solid global demand, particularly for high-protein wheat, traders said. Optimism that US wheat could capture a share of an upcoming tender by Saudi Arabia that closes on Friday. Canadian wheat may also be a contender, while quality concerns could limit Australian offers, traders said.
US wheat may struggle to compete with Russian wheat in a tender by Iraq that closes on Monday, traders said. Dryness in Ukraine, a major grain exporter, could restrict its ability to export grain next year and the country may be forced to turn to imports, the farm ministry said. US traders keeping an eye on the situation as it was still too soon to forecast failure of the winter crop.
Ukraine's Agriculture Ministry cut its wheat export forecast for 2011/12 to 6 million tonnes from a previous estimate of 9-10 million tonnes. Soyabean export premiums at the US Gulf Coast held steady, underpinned by moderate demand from China, traders said. Top importer China may have bought one cargo of Gulf soyabeans on Friday for late-January shipment after buying small amounts from the Gulf earlier in the week, but the sales tally was lighter than normal for the time of year, traders said.
China bought about two to four cargoes of US Gulf soyabeans since midweek but bought at least six cargoes from Brazil for early 2012 shipment, a period typically dominated by US soyabean exports, traders said. Corn export premiums at the US Gulf eased on Friday in tandem with weaker CIF barge basis values amid sluggish export demand, traders said. US corn struggling to compete in world markets with cheaper Black Sea corn and feed wheat from the Black Sea and Australia. But strong demand from US corn processors and ethanol makers, and slow farmer selling, has kept supplies in the export pipeline tight and underpinned premiums.