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US soyabean export premiums at the Gulf of Mexico rose this week as a shrinking South American crop supported demand for US supplies, while corn export premiums were near steady in the week, traders said Friday. Tightening old-crop US soya stocks sending prices up, rationing demand, traders said.
New-crop sales expected to remain strong amid crop woes in South America due to drought. Latest Argentine crop forecasts show 25 percent decline in production from year ago. Soyabean barges firmed at midweek in summer shipment positions amid tightening stocks outlook and good demand from exporters.
CORN, WHEAT Solid demand for US corn from regular buyers underpinning export premiums. Easing US dollar and recent decline in ocean freight also supportive to corn demand. Wheat export premiums about steady in the week, capped by dull demand amid high prices and abundant global supplies. US wheat prices had been more competitive with wheat from other countries earlier this week, but Friday's strong rally in futures widened the price gap again.
The most competitive US wheat bid in this week's sale to Egypt was only $4 a tonne (FOB) more than the winning Canadian bid, although US wheat had an additional freight disadvantage. Japan bought a total of 148,000 tonnes US wheat in its regular tender.

Copyright Reuters, 2009

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