FOB Gulf corn export premiums study

Corn export premiums at the US Gulf Coast were about steady on Thursday as a 3 percent jump in futures prices chilled demand, but the market remained abuzz with talk that China may have bought some US corn. Rumours that both government and private buyers in China purchased US corn late Wednesday rallied corn futures from three-month lows. Traders could not confirm the sales, but said modest strength in CIF basis values at the Gulf suggested at least some small old-crop purchases were made.
Demand for US corn was otherwise slow as old-crop US corn prices at the Gulf not competitive with South American prices, which were about $15 to $20 per tonne lower on a FOB basis. South Korea's KOCOPIA bought 55,000 tonnes corn via a tender. The price indicated the corn would likely be sourced from South America, traders said. Argentina authorised 3 million tonnes of 2011/12 corn for export, the Agriculture Ministry said Wednesday.
Soybean export premiums at the US Gulf were unchanged to higher on steady demand from China and drought-reduced supplies in South America that is diverting demand to the United States, traders said. CIF soybean barges for May loading traded 1 to 2 cents per bushel higher as exporters filled immediate needs and sought additional supplies in anticipation of old-crop export demand, traders said.
Argentina's government cut is 2011/12 soy crop forecast to 42.9 million tonnes due to dry weather and disapointing yields, down from 44 million previously and below USDA's forecast for 45 million tonnes. One to two Brazilian cargoes likely sold to China on Thursday for mid-summer shipment, traders said. USDA on Thursday confirmed private sales of 110,000 tonnes US soybeans to China for 2011/2012 delivery.
US wheat export premiums at the Gulf Coast were firm on tight old-crop supplies and good demand. Traders awaiting results from Iraq's tender for wheat which closed on Sunday amid talk that the country may have bought 300,000 tonnes of wheat from an unspecified origin.