Wheat export premiums at the US Gulf Coast were firm on Thursday, supported by strong global demand and good export prospects for US supplies, traders said. Falling futures prices this week put US wheat in a more competitive position on the global market, while demand from Middle East and North African countries remains strong.
US hard red winter wheat is the leading contender for sales to Saudi Arabia, which tendered this week for 275,000 tonnes with bids due on Friday. Results should be available early next week, traders said. Canadian wheat may also be competitive in the Saudi tender, particularly for the later shipping periods such as the June arrivals. Australian wheat has an outside chance, while German wheat prices are likely too high and Argentine wheat may be unable to meet the specs, traders said.
US wheat also likely to secure sales in a tender by Iraq which closes March 5. USDA's CCC on Thursday bought a total of 15,000 tonnes US hard red winter wheat for donation to Afghanistan, 10,000 tonnes soft white wheat for Bangladesh. South Korean mills have bought 30,000 tonnes of hard and soft US wheat via a private tender. US Gulf corn export premiums were level on Thursday amid steady demand, mostly from regular buyers, traders said.
Dip in prices this week from 2-1/2 year peaks attracted some additional demand from regular importers like Japan and Mexico, but competition from abundant global feed wheat supplies and South American corn restricting other sales. South Korea's KOCOPIA bought 55,000 tonnes optional origin corn.
US soyabean export premiums were flat on Thursday amid seasonally slowing demand for old-crop US supplies, traders said. Near term US soyabean shipments from the Gulf were not competitive with cheaper South American supplies amid approaching harvest of bumper crops in Brazil and Argentina.
March soyabean imports by top buyer China seen at 3.16 million tonnes, the lowest in a year. May imports seen rebounding to around 5 million tonnes. Traders expect USDA export sales report on Friday to show net corn sales last week at 850,000 to 1 million tonnes, wheat at 700,000 to 1 million, soyabeans at 300,000 to 500,000.