US FOB Gulf corn and soyabean export premiums rose on Monday as traders expected recent falls in futures prices to spur fresh demand, traders said. China may have bought more US soyabeans last week than traders initially thought. Traders believe China bought two soyabean cargoes off the US Pacific Northwest and as many as three Panamax cargoes from the US Gulf, traders said.
Export sales of US soyabeans have improved due to higher prices in Brazil, the second largest exporter behind the United States. Buyers were also opting for US soyabeans due to uncertainty about when Brazil can fulfil orders due to slow farmer selling.
Corn basis offers climbed about 5 cents a bushel, reflecting tight supplies at the Gulf and steady export demand. A consortium of Israeli private buyers bought 56,000 tonnes of corn, European traders said on Monday. The corn was optional origin but would probably come from the United States, traders said. US corn would ship September 15-October 5.
The Jilin Grain Group said that in the future China's corn exports would dry up amid an expansion of the country's processing industry. China curbing corn exports has helped US corn sales. China importing large amounts of corn would give US corn a further boost, traders said.
Water levels on the Mississippi River at St. Louis are falling faster than expected, barge operators said. The gauge height is currently -1.0 feet and is expected to fall to -1.5 feet on Tuesday and -2.0 feet on Wednesday. Operators have already cut barge drafts to 9 feet to avoid running aground, but may have to further lighten loads.
Barge freight tends to increase when drafts are shallower due to elevators needing more barges to transport grain. Soft red winter wheat export premiums held steady, supported by news that the Egyptian government bought 55,000 tonnes of US SRW wheat at $141.45 per tonne FOB. Egypt's GASC also bought 55,000 tonnes of Canadian soft red wheat at $139.50 a tonne.
Hard red winter wheat export premiums rose sharply amid Kansas City wheat falling to a fresh three-month low. "They're going to go even higher if the board drops anymore," said a wheat trader. Several export deals were in the works, traders said.
Iraq was still working on a tender to buy wheat that it issued several weeks ago. Both Nigeria and Columbia made inquiries about buying US wheat. Italy and Spain were said to be looking to purchase high-protein US spring wheat.
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