US FOB Gulf soyabean and corn export premiums held steady on Wednesday, despite a sharp rise in soyabean futures at the Chicago Board of Trade, traders said. Hard red winter wheat basis offers were slightly firmer amid tight old-crop supplies, while soft wheat premiums were mostly steady.
Export demand for all grains and oilseeds was light due to high US prices and rising ocean freight.
"People are still kicking tires, but freight is pretty expensive," said a wheat trader. Buyers are holding out for new-crop US soft wheat whenever possible. The first supplies should be ready for export in two months and buyers expect supplies to be cheaper at that time.
Those who need cargoes before the harvest may turn to US wheat with supplies getting tighter in Europe and Argentina, traders said. In exports, South Korean flour millers bought 20,400 tonnes of US wheat for May shipment, but passed on another tender to buy 20,000 tonnes for May/June shipment due to high prices, traders said.
Egypt's state-owned General Silos and Storage company cancelled a tender Tuesday to buy up to 60,000 tonnes of wheat for April shipment due to high prices. Taiwan's Flour Mills Association will tender on Friday to buy 38,660 tonnes of US wheat for shipment from the west coast in May. The upper Mississippi River is expected to reopen later this week, sending loaded barges to the Gulf at a time when additional supplies are not needed.
Shipments of grain from elevators on the Illinois and lower Ohio river have slowed as farmers focus on preparing fields for spring planting. In exports, the Korea Feed Association bought 110,000 tonnes of US corn for September delivery at $222.04 per tonne, including cost and freight.
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