Export premiums for corn at the US Gulf Coast were steady to higher on Friday, supported by tight supplies and signs that demand for US supplies could increase in the coming weeks, traders said. CIF corn barge basis jumped for a third straight day as slow farmer selling kept available supplies tight. Exporters were also concerned of a possible closure of the Mississippi River in early December due to projected low water levels.
South American premiums for nearby shipments of corn have surged and offers for early 2013 shipments were scarce, leaving the United States as the only large-volume supplier until the next South American crop is harvested beginning in about March. European feed users likely need to import a significant volume of corn before next spring following crop losses there and in Ukraine, a big exporter to the EU.
Reports that Japan switched the origin of a large volume of its early 2013 corn purchases from Brazil to US due to loading delays could not be confirmed. Soyabean export premiums at the Gulf held mostly steady, underpinned by the threat of a river closure which could cut off supplies from next month. Some exporters did not post offers due to uncertainty about replacement supplies, a trader said.
Chinese demand for US soyabeans was quiet amid poor margins at its crushing plants and expectations for a record-large South American crop next spring which could keep prices anchored. Soft red winter wheat premiums at the Gulf were quietly steady amid a lull in demand. SRW wheat was competitively priced in the world market as supplies were running low in Europe and the Black Sea region and amid crop production shortfalls in Australia and Argentina.
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