US FOB Gulf corn bids higher on good demand

Basis bids for corn delivered by barge to the US Gulf Coast were steady to higher on Thursday on good demand for lower-moisture grain shipped in the near term, traders said. Exporters are offering premiums of 2 cents a bushel or more for corn loaded at 14.5 percent moisture so it can be immediately loaded on export-bound ships. CIF market specs typically call for 15 percent moisture corn.
Corn FOB premiums were flat to weaker as new demand for Gulf shipments is light. Buyers such as South Korea are turning to cheaper corn offers from the Pacific Northwest, traders said. Gulf soyabean export market premiums were steady to lower on limited demand and ample supplies. Brazilian export premiums for December and January shipments are about 10 cents a bushel higher than US Gulf offers, but buyers, including China, tend to prefer higher-protein beans that Brazilian exporters offer, traders said.
Net US corn export sales last week fell short of trade expectations at about 950,0000 tonnes, according to USDA data on Thursday. The prior week's sales were the highest in 5-1/2 years. Net soyabean and wheat export sales last week were within the range of trade expectations. South Korea's MFG bought 70,000 tonnes of optional-origin corn via a tender. It was the latest of a string of corn deals by South Korean importers.
Egypt's GASC bought 240,000 tonnes of Russian wheat in a snap tender. GASC received only six offers, none of which were US wheat. Spot CIF corn barges were bid 36 cents a bushel over Chicago Board of Trade December futures while December barges were bid 43 cents over, both up a penny. Low-moisture December corn barges traded at 45 cents over futures. December corn shipments from the Gulf were offered at 52 to 54 cents over futures.
CIF soyabean barges loaded November 20-30 traded at 32 cents over CBOT January futures, about steady with the previous day. December barges traded a penny lower at 36 cents over futures. December soyabean shipments from the Gulf were offered at 47 to 49 cents over futures. November SRW wheat barges were bid steady at 55 cents over CBOT December futures. Spot export premiums were 80 cents over futures.
November CIF HRW wheat bids were 210 cents over the K.C. December contract for 12 percent protein grain. Spot export premiums were around 220 cents over futures.