Corn export premiums at the US Gulf Coast were higher on Thursday on robust export demand and tight old-crop supplies, traders said. Very slow farmer sales of old-crop corn keep available supplies tight. Producers await higher prices before liquidating the last of the grain harvested last fall.
Corn export sales last week topped trade forecasts for a second straight week as expectations for tight stocks prompted importers to book bigger forward purchases. Widespread talk that private Chinese importers may have bought at least two cargoes of old-crop US corn this week as domestic prices in China remain near record highs. Traders could not confirm the sales but said the stronger spot CIF basis at midweek may have been partly due to Chinese buying.
CIF April corn barges traded as high as 66 cents a bushel over CBOT May futures on Wednesday and Thursday. That was up about 6 cents from spot basis bids a week earlier. Iranian government expected to start buying large volumes of feed grains on the world market as financial sanctions have made it difficult for farmers to source feed.
Soyabean export premiums were mostly steady to firm, supported by active demand from top buyer China, traders said. Brazilian soyabean premiums leveled on Thursday after spiking earlier this week. The rise in Brazilian values made nearby shipments of US soya more competitive on the world market, traders said. China has been aggressively booking soyabean purchases this week for fall shipment from the Pacific Northwest, including at least one or two cargoes on Thursday, and for spring-summer 2013 shipment from Brazil.