Export premiums for corn and soyabeans shipped from the US Gulf Coast eased on Tuesday along with weaker CIF basis values, with corn additionally pressured by dull demand for US supplies, traders said. Basis offers for US wheat, FOB Gulf, were unchanged in muted trading amid ample global supplies and demand for US grain limited by high prices and a strong dollar.
CIF corn and soyabean basis bids fell by 1 to 3 cents a bushel on Tuesday afternoon as barge freight eased. Soyabean premiums remain underpinned by solid demand from China for November and December shipments. Available South American supplies have thinned after several months of record-high exports, allowing US shipments to accelerate.
US corn exports are struggling to compete with cheaper Brazilian supplies. Spot offers for Brazilian corn at some ports are $10 to $15 per tonne cheaper on a FOB basis than US Gulf shipments, traders said. Brazilian corn exports hit a record 5.55 million tonnes in October, according to Brazil's trade ministry, as a weak real stoked active farmer selling that pushed prices to a sizable discount to US Gulf shipments. The surge came even as US farmers were nearly finished harvesting a bumper crop. South Korea's KOCOPIA bought about 55,000 tonnes of corn, likely to be sourced from South America, via a tender that closed on Tuesday, traders said.
FOB Gulf soyabean basis offers for November and December were around 84 cents a bushel over Chicago Board of Trade January futures, which closed 1/4 cent higher at $8.79 per bushel. FOB Gulf corn basis offers for November loadings were 2 cents lower at 78 cents a bushel over CBOT December futures, which closed 4 cents higher at $3.80-1/2. November soft red winter wheat offers held steady at 85 cents over December futures, which closed 8-1/2 cents higher at $5.16-1/2. November hard red winter wheat offers were flat at around 110 cents over December futures, which closed 4-3/4 cents higher at $4.87-1/2.

Copyright Reuters, 2015

Comments

Comments are closed.