US Gulf Coast wheat export premiums eased on Friday as CIF barge basis values dropped and as US grain struggled to compete in global markets, traders said. A drier forecast for southern winter wheat areas reduced some concerns about crop damage from recent heavy rains. Grain dealers said the quality of some HRW wheat in central Texas and southern Oklahoma would fall below export grade.
Demand for US wheat was light as less expensive supplies were available from several rival exporters in Europe and the Black Sea region, traders said. Russia approved a new wheat export tax from July 1, which traders say could threaten profits on advance contracts for the new crop if the ruble weakens.
US FOB SRW wheat offers for May were unquoted. June and July offers were 75 cents over CBOT July futures, which closed 11-3/4 cents lower at $4.77 a bushel. HRW June and July offers at the Texas Gulf were 130 cents over July futures, which closed 11-1/2 cents lower at $4.98-3/4. US soyabean export premiums were unchanged amid slow demand for old-crop supplies and moderate demand for new-crop shipments, traders said.
The USDA on Friday confirmed private sales of 202,000 tonnes of new-crop US soyabeans to unknown destinations. Traders said the announcement appeared to confirm Chinese purchases of about four cargoes at midweek. FOB Gulf soyabean basis offers held steady for June and July shipments at 90 cents over CBOT July futures, which closed 8 cents higher at $9.34. Corn export premiums were mostly steady, with near-term values underpinned by recent limited farmer selling that tightened supplies available to exporters.

Copyright Reuters, 2015

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