Corn export premiums rise at US Gulf Coast

Corn export premiums at the US Gulf Coast rose on Tuesday on tight nearby supplies and a lack of farmer selling after the futures plunged more than 2 percent, traders said. Corn export demand was moderate despite US Gulf prices at a premium of around $8 to $10 per tonne to Argentine prices. Demand noted from regular US corn importers South Korea, Japan and Mexico.
Nearby CIF corn basis values firmed by 1 to 2 cents per bushel on Tuesday on tight spot supplies and a lack of farmer selling, traders said. Nearby FOB basis offers at the Gulf up about 5 cents this week. USDA left its 2011/12 US corn export forecast unchanged in a monthly report on Tuesday, raised Brazil's by 500,000 tonnes. USDA left Chinese corn imports for 2011/12 steady at 4 million tonnes, despite nearly 4.2 million tonnes of US corn already sold to China for the marketing year.
Soft red winter wheat export premiums at the US Gulf were firm on strong demand and slow grain movement into the export market, traders said. Hard red winter wheat premiums were flat, despite sharply lower futures, amid weak export demand. USDA cut its 2011/12 hard red winter wheat exports forecast by 15 million bushels, raised soft red winter wheat exports by 15 million bushels.
Japan seeking 145,123 tonnes wheat via a regular weekly tender, including 86,597 tonnes from the US. Algeria seeks a nominal 50,000 tonnes of optional-origin wheat for June shipment. Traders said the origin would likely be European or South American.
Other large outstanding tenders include Jordan seeking 100,000 tonnes hard wheat via a tender closing April 18 and Iraq seeking at least 50,000 tonnes in a tender closing April 15. Louis Dreyfus was among several firms showing interest in the privatisation of Russian state-owned United Grain Co. Soyabean export premiums at the US Gulf were mostly steady to firm, underpinned by good export demand amid a shortfall in South American soya production. Private exporters sold 165,000 tonnes US soyabeans to China for 2012/13 shipment, USDA said Tuesday.