Wheat export premiums at the US Gulf Coast were mostly steady on Tuesday, with hard red winter underpinned by good demand and soft red winter supported by thin supplies and a firm CIF market, traders said. Nearby CIF SRW wheat barges traded as high as 75 cents a bushel over Chicago Board of Trade May futures, up from bids of 65 over late last week. CIF HRW basis mostly steady.
US wheat was in a strong position to capture the majority of large tender business through July as export-grade supplies from origins will be tight until the next northern hemisphere crop is gathered this spring. Sudan seeking 300,000 tonnes any origin wheat for arrival April through July via tender closing Sunday.
US hard red winter wheat was in position to capture a share of the Sudan tender as prices were competitive and other hard wheat origins may not have much wheat available for some of the shipping periods, traders said. Japan seeks 135,823 tonnes food wheat via a regular tender, including 34,917 tonnes US white wheat and 28,887 tonnes US hard red winter wheat.
Iraq said it would buy 2.8 million tonnes of wheat in 2011 to increase its strategic stockpile, up from 1.9 million tonnes in 2010. US corn export premiums were weak on sluggish demand for Gulf shipments and weaker CIF barge basis values. April and May shipments from PNW cheaper to many key destinations than Gulf shipments, a trader said.
South Korea's Nonghyup Feed bought 55,000 tonnes US corn, 55,000 tonnes optional origin corn, passed on another two cargoes in a tender for up to 245,000 tonnes. Taiwan's MFIG to tender on Wednesday for up to 60,000 tonnes US corn. No fresh demand reported from Mexico following a flurry of buying in recent weeks after a frost damaged its crop. But demand inquiries for US corn heard from Venezuela, which may have sought to import Mexican corn before the frost damage.
Soyabean export premiums at the US Gulf were quietly steady on Tuesday amid seasonally slow demand, traders said. Nearby CIF soyabean basis bids were sharply higher on Tuesday as exporters scrambled for supplies to load vessels at the Gulf. But FOB basis offers unquoted for the sold out March and early April positions, while deferred values were flat.