US FOB Gulf corn premiums lower on weak demand

Corn export premiums at the US Gulf Coast were flat to lower on Thursday, weighed down by weak export demand and rising supplies of newly harvested grain, traders said. Stiff competition from low-cost South American corn is limiting demand for US supplies. A South Korean importer bought a December Brazilian corn cargo at about 11 cents over futures, compared with US Gulf offers above 70 cents over, traders said.
Corn export sales in the 2015-16 season to date at 28 percent below a year ago and sales to Japan, the top US market for corn, are down about 22 percent, according to USDA data. FOB Gulf corn basis offers for October were unquoted, with the bulk of loading capacity either sold out or earmarked for soybean shipments. November basis offers were 70 cents a bushel over Chicago Board of Trade December futures, which closed 4-1/2 cents lower at $3.91-1/4.
Gulf soybean export premiums held mostly steady. Importers in China inquired about prices after markets there reopened from a week-long national holiday, but traders were unaware of any fresh sales. Soybean export shipments in September were on pace with a year ago, due largely to an earlier harvest this year, traders said. But total export sales for 2015-16 shipment are down 26 percent from last year and sales to China are down nearly 47 percent, according to USDA data.
FOB Gulf soybean basis offers for last-half October loadings were around 103 cents over November futures, which closed 9-3/4 cents lower at $8.81-1/4 a bushel. First-half November shipments were offered at about 100 cents over futures. Wheat export premiums were flat in mostly quiet trade as abundant global supplies of cheaper grain dampened demand for US shipments.
Egypt's GASC is seeking wheat for shipment November 11-20, with results of the tender expected on Friday. Recent tenders have favored Black Sea region wheat. Traders said US wheat is unlikely to be offered in the tender due to uncompetitive prices and difficult-to-meet quality specifications. Syria and Saudi Arabia also issued tenders to buy grain on the global market, although neither is a major buyer of US wheat. November SRW wheat offers were 85 cents over December futures, which closed 5-1/4 cents lower at $5.11-1/2. Spot HRW wheat offers were about 105 cents over December futures, which closed 4-1/2 cents lower at $5.03-1/2.