FOB offers for corn at the US Gulf fell in deferred months on Friday on expectations for ample supplies of corn this winter, traders said. FOB soybean and wheat offers were mostly steady. Barge freight was steady to down slightly on Midwest rivers. [BG/US] Wheat offers had a firm tone on expectations of slow farmer sales during the next few months, a trader said.
Overseas demand for US corn and wheat was light as cheaper supplies were available from other countries. Brazilian corn, currently about $160 per tonne FOB, is cheaper than US corn, which costs $182 per tonne FOB Gulf. Favourable harvest weather is forecast for the US Corn Belt this weekend, which could lead to heavier deliveries to elevators in the Midwest during the next week.
Harvest delays this fall have helped push corn prices higher. The US dollar's rally may continue during the next few week as investors unwind risky positions, which could hurt overseas demand for US commodities. Japan bought less wheat than planned for the fifth time in a row. South Korea bought 110,000 tonnes of corn for February arrival, with traders saying that half the corn will come from Brazil rather than the United States.
Comments
Comments are closed.