US Gulf corn and soyabean export premiums were flat to lower on Wednesday on light demand for US supplies amid persistent competition from South American shipments, traders said. Purchase inquiries from regular US corn importers such as Japan and Mexico have slowed after this week's surge in Chicago Board of Trade corn futures to one-year highs, traders said.
Barge shipping delays kept a floor under export premiums for old-crop corn. CIF July barge bids were at a rare premium to August bids after the US Coast Guard closed a portion of the Illinois River to all traffic due to near-record flooding. New-crop corn demand was dull for September through November shipments amid stiff competition from cheap South American grain. Brazil is expected to run low on exportable corn by December, likely shifting more demand to the United States, traders said.
FOB basis offers for July corn shipments were unquoted due to a lack of available loading capacity. Offers for August were around 60 cents over the CBOT September contract, which closed 1-1/4 cents higher at $4.29-1/2 a bushel. FOB Gulf soyabeans for August were offered at 90 cents over CBOT August futures, which closed 8-1/2 cents lower at $10.25 a bushel.
FOB wheat export premiums were flat on weak demand for US grain and rising supplies from an ongoing winter-crop harvest, traders said. US wheat was priced well above rival exporters' grain, prompting some regular Latin American importers to turn to Europe and the Black Sea region for grain, traders said. Top world wheat importer Egypt said its strategic wheat reserves will last until mid-February.
FOB soft red winter wheat at the New Orleans Gulf for July and August was offered unchanged at 70 cents over CBOT September. FOB hard red winter wheat for July and August shipment from the Texas Gulf were flat at 105 cents over the September HRW contract. The USDA will release last week's US export sales data early on Thursday, with old-crop corn sales expected to be down from a week earlier and new-crop sales seen up. Soyabean sales are expected to remain seasonally low.
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