US corn export premiums at the Gulf of Mexico were firmer on Friday following rising CIF barge values and amid routine demand, while wheat and soyabean basis offers were steady, traders said. US corn prices were competitive on the world market through July, but some deferred values were less competitive, traders said.
Corn supplies in the export pipeline were adequate, but reluctant farmer selling kept a firm floor under basis. FOB corn basis up 1 to 2 cents a bushel from week ago. China to sell some corn out of state corn reserves amid tight supplies at some domestic processors. But traders said it was not a major factor for US export market.
US soyabean prices at the Gulf remain at a premium to South American supplies, although the price spread has narrowed this week. FOB soya basis about steady with a week ago. Weaker Brazilian real, outlook for big US soya seedings triggers active farmer sales of 2008/09 Brazil soya crop. Record large exports despite unseasonably strong export premiums. Rallying soya prices push Chinese crusher margins into the red.
Midweek break in wheat prices triggered some US export business. But demand lift seen short-lived as US prices remain well above wheat sourced elsewhere. Recent climb in ocean freight further dampens US wheat prospects to key destinations in Middle East and Africa. Awaiting official confirmation of results in latest Iraq tender for 50,000 tonnes wheat. Traders said Canadian and Australian wheat likely involved, but no US wheat.
Trade talk that Iraq may tender for more wheat next week, one wheat dealer said. Taiwan to tender for 51,410 tonnes US wheat on Tuesday. Thailand buys 45,000 tonnes US wheat for June shipment, Philippines buys 25,000 tonnes for year-end shipment, Indonesia buys 25,000 tonnes for July/August shipment. Morocco to impose 135 percent tariffs for soft wheat imports for the June 1-December 31 period.
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