US FOB Gulf corn basis offers stayed unchanged after the close on Friday but the market tone firmed as futures jumped to five-month highs on optimism about exports to China, traders said. Soyabean offers were also unchanged as the market continued to cool this week as the torrid pace of China's buying program tailed off. Wheat basis offers were steady as futures continued to climb on spec buying.
FOB Gulf corn for December was unquoted with year end capacity accounted for. But January-February-March were all unchanged at 75 cents over CBOT March, which closed up 9 cents at $4.07-1/2. Traders said talk that Ukraine might not honour corn contracts signed with China as supportive to US corn futures. The tone improved further after the close when Syngenta, the maker of GMO corn variety MIR 162 widely used in the United States but banned in China, said Chinese authorities are near approval.
FOB soyabean offers for December-January were unchanged at 110 cents over CBOT January, which closed up 5 cents at $10.47-1/4. Thursday's USDA weekly export commitments confirmed talk this week that China's buying had peaked for this season. That sentiment was underscored when USDA on Friday morning reported a sale of 110,000 tonnes of 2015/16 soyabeans to unknown destinations - likely to China, traders said.
US wheat FOB basis offers also were quoted unchanged with stronger futures boosting the US dollar flat price at the Gulf. US wheat remains uncompetitive for many world wheat buyers due to the strong dollar and aggressive exports by Black Sea and European shippers, especially Russia. HRW FOB offers at the Texas Gulf December through March held at 145 cents over KCBT March, which closed up 6-3/4 cents at $6.34-1/4. FOB Gulf SRW wheat offers were also steady at 145 cents over CBOT March, which ended up 9 cents up at $6.06-1/2.
Traders in Russia said Friday exporters were sharply discounting wheat to book sales before the government decides to clamp down to replenish stocks and prevent bread prices from rising. The winning Russian bids for Egypt's GASC tender on Thursday were $30 a tonne cheaper than US SRW wheat, traders noted. Russian wheat, made even cheaper with the free fall in the rouble, is set to jump to second in the world export market behind the US, surpassing Canada and Australia, according to USDA.
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