US FOB Gulf corn offers flat on light demand

Export premiums for corn shipped from the US Gulf Coast were mostly flat with a weak tone on Friday, pressured by dull demand and plentiful supplies in the export pipeline, traders said. Corn barge basis bids have fallen by about 5 cents a bushel since midweek as farmers flooded the market with grain at a time when export demand remained weak.
US corn shipped from the Gulf Coast is not competitive on the world market. Pacific Northwest corn is competitively priced through June, but demand for spot shipments is light as many buyers are well bought for the near term, traders said. Soyabean export premiums at the Gulf were quietly steady on light demand as cheaper South American new-crop supplies have flooded the world market.
Farmer soyabean sales in Brazil were quiet on Friday as the real currency firmed. A steep drop in the real last week triggered several days of farmer sales there and weighed down cash market premiums, making US shipments less competitive on the world market, traders said. Soyabean crush margins in China hit nine-month lows this week as soyameal stocks have soared and prices for the animal feed have dropped amid sluggish end-user demand.
Chinese markets will be closed on Monday and Tuesday of next week for the Dragon Boat Festival holiday. US markets will be closed on Monday for the Memorial Day holiday. Wheat export premiums were quietly steady on muted demand and ample world supplies. Australia's grain exports have shot to record volumes this year as bumper crops push down prices. Russia's grain exports are expected to reach a record 36.5 million tonnes in the 2016/17 marketing year, which ends on June 30. Corn shipments loaded in June were offered around 40 cents a bushel over Chicago Board of Trade July futures.
Soyabean shipments loaded in late June and July were offered about 42 cents a bushel over CBOT July futures. June SRW wheat shipments were flat at about 55 cents a bushel over CBOT July futures. HRW wheat cargoes at the Texas Gulf for June shipments were offered at about 140 cents over July futures.