CHICAGO: Export premiums for wheat at the US Gulf Coast were steady to firm on Thursday amid good global demand and limited near-term loading capacity at several export terminals, traders said.
Egypt's GASC set a tender to buy cargoes of wheat for shipment in late January and early February, with results expected on Friday.
US soft red winter wheat is among the least expensive wheat varieties currently on the world market. But most Louisiana Gulf elevators have little available loading capacity through at least the end of this month because of heavy corn and soybean commitments so offers to Egypt may be limited, traders said.
Other outstanding wheat tenders include Algeria seeking at least 50,000 tonnes of any origin milling wheat for shipment in March and Taiwan's Flour Millers' Association seeking 54,800 tonnes of US wheat late February to early March shipment.
Soybean export premiums at the US Gulf were flat, with nearby prices at a premium to deferred values amid limited US loading capacity through this month and as South American supplies will begin to flood the world market next month.
Good crop weather in Brazil and improving weather in Argentina may boost soybean production above current forecasts. Traders anticipate Chinese cancellations of some US soybean purchases in the coming weeks as South American supplies may be available at a large discount.
Soybean demand by China on Thursday was limited to light inquiries about new-crop South American shipments, traders said.
Corn premiums were unchanged on light demand, with some Asian buyers delaying purchases in case China rejects further imports over an unapproved GMO variety. Some rejected cargoes have been resold at discounted prices.
The US Department of Agriculture will release weekly export sales data on Friday, delayed by a day due to the New Year's Day holiday. Corn sales last week were estimated at 650,000-850,000 tonnes, soybeans at 500,000-800,000 tonnes, and wheat at 350,000-550,000 tonnes.
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