Export premiums for corn and soyabeans shipped from the US Gulf Coast firmed on Wednesday in tandem with higher CIF barge basis values amid strong export demand, traders said. Soft red winter wheat export premiums were mostly flat on sluggish demand, while hard red winter wheat premiums were steady to firm, traders said.
Old-crop CIF corn basis bids jumped by as much as 4 cents a bushel on Wednesday, while old- and new-crop CIF soyabean basis bids rallied by as much as 5 cents a bushel, traders said. The CIF bids were boosted by higher barge freight costs, they said. US corn remains competitively priced in the global marketplace, although Argentine corn prices for August through October shipment have slipped below US Gulf prices. But replacement costs in Argentina remain elevated and a large backlog of delayed vessels waiting to load there is discouraging buyers from booking large spot shipments, traders said. Brazilian corn prices have eased but remain at a premium to the Gulf, while grain replacement costs in Brazil are much higher, traders said.
Demand from China for soyabean shipments from July to October remains strong and the world's top importer has booked purchases this week from the United States and South America, traders said. The US Department of Agriculture is due to release reports on US planted acreage and quarterly stocks on Thursday. Traders said they will be paying close attention to changes in the government's soyabean plantings estimate amid concerns about tight stocks.
The USDA is also scheduled to release weekly export sales data on Thursday morning. Analysts expect continued large soyabean sales and strong old-crop corn sales. FOB Gulf July corn shipments were offered at about 90 cents over CBOT September futures, which closed 11 cents lower at $3.77-3/4 a bushel. Soyabean export premiums for July shipments were 99 cents a bushel over CBOT August futures, which closed 5-3/4 cents lower at $11.40-1/2 a bushel.
July soft red winter wheat was offered at about 60 cents over CBOT September futures, which closed 12-3/4 cents lower at $4.44-1/2 a bushel. July hard red winter wheat offers were about 105 cents over September futures, which closed 8-1/2 cents lower at $4.19-3/4 per bushel.
Comments
Comments are closed.