US corn export premiums at the US Gulf Coast were flat on Friday amid sluggish demand and the start of the Southern harvest, dealers said. Poor export demand for corn amid elevated prices and strong competition from alternative feed grains such as wheat have weighed on basis values. But sharply lower futures on Friday may generate fresh demand from routine buyers, traders said.
Spot FOB basis offers were quoted at about 90 cents a bushel over Chicago Board of Trade September futures, down about 5 cents on the week. Spot CIF basis bids were down about 7 to 8 cents from a week earlier. US hard red winter wheat export premiums were mostly firmer amid solid demand for high-protein wheat, with traders eyeing a large tender by Iraq that closes this weekend.
Bidding deadline in Iraq tender for at least 100,000 tonnes of wheat from any origin was Saturday for reply by next Tuesday. US and Australian wheat have dominated recent Iraq tenders, but some traders say Russia may compete in this tender if quality is good enough. US soft red winter wheat export premiums were flat to lower on Friday, traders said. Export demand for SRW remained quiet despite sinking futures prices as Russian wheat can be purchased for far less.
Egypt's GASC bought 240,000 tonnes Russian wheat on Friday for September 1-10 shipment, the fourth straight tender in which GASC bought Russian wheat. US prices were $30 per tonne higher FOB than the winning Russian bids. US soyabean export premiums were unchanged in quiet trade, although demand for new-crop soya has firmed this week. Private exporters sold 220,000 tonnes new-crop soyabeans to China, USDA said on Friday.