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US wheat export premiums were steady to mostly higher on Friday, supported by demand from Egypt and worries about drought-reduced production and possible export curbs in Russia, traders said. Soft red winter wheat premiums were mostly unchanged, but hard red winter wheat premiums were up 10 to 20 cents a bushel amid a slowdown in grain movement and the possibility of sales to Egypt, traders said.
Egypt's GASC seeks cargoes of optional-origin wheat for shipment August 21-31. Results due Saturday. Traders expected Russian and French wheat remain the top contenders for sales to Egypt. US wheat offers could be limited by GASC's tough phytosanitary terms. Egypt may also pass if prices are too high, traders said. Wheat tenders next week include Jordan on Tuesday seeking 100,000 tonnes any origin wheat for September/October shipment.
Japan buys 141,567 tonnes food wheat from the US, Canada and Australia via regular tender. Russia's state grain trader UGC said it still aims to export at least 1 million tonnes of grain this year despite drought-reduced production. There was some talk among traders that UGC may have defaulted on one to three cargoes of wheat as recently as this week, but UGC denied that it had defaulted.
Australia's GrainCorp, AWB merge to form leading exporter in fourth largest wheat exporting nation. US soybean export premiums at the Gulf of Mexico were steady with a firm tone on Friday amid continued strong demand from China for new-crop supplies, traders said. Offers for October, much of November unquoted as many exporters sold out of capacity. Traders said China may have purchased three cargoes of US new-crop soybeans on Friday.

Copyright Reuters, 2010

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