Corn export premiums at the US Gulf Coast were steady to firm on Thursday as solid demand from traditional buyers and emerging importer China supported values, traders said. Private exporters confirmed sales of 120,000 tonnes US corn to China for shipment in the current marketing year, USDA said on Thursday. There were also 110,744 tonnes in sales to unknown buyers.
More sales to China were expected as rising domestic prices in southern areas made imports from the United States a more cost-effective option. Prices in parts of southern China were more than $60 per tonne above imported prices, not including import duties.
Demand inquiries from Japan and Mexico also noted on Thursday, but no sales were confirmed, traders said. Soyabean export premiums at the US Gulf Coast were mostly steady amid tight spot supplies and firm demand for both old-crop and new-crop shipments, traders said.
US Gulf soyabean export prices competitive with new-crop Brazilian prices on the world market into April, when Brazilian prices typically are far cheaper than US prices. But slow farmer selling in Brazil has propped up basis values this year. Hard and soft red winter wheat export premiums at the US Gulf Coast were mostly steady on Thursday. SRW values were underpinned by good export demand for what is the least expensive wheat in the world, traders said.
Iran bought some 800,000 tonnes of wheat, trade sources told Reuters on Thursday, including 500,000 tonnes from Russia and 300,000 tonnes from Australia. Tunisia bought 50,000 tonnes optional-origin soft wheat on Thursday, European traders said. Spain has purchased at least 85,000 tonnes of US wheat to use in animal feed.
Wheat export sales last week were estimated at 500,000 to 900,000 tonnes, traders said ahead of USDA's weekly export sales report on Friday. Corn sales seen at 800,000 to 1.2 million tonnes, soyabean sales could top 3.5 million tonnes if the sales confirmed to China last Friday are included.