Corn export premiums at the US Gulf Coast were mostly steady on Friday after rising earlier in the week on stronger export demand and slow farmer selling that has limited supplies available to grain shippers, traders said. Rising corn prices in rival exporter Argentina amid drought-related crop losses supporting demand for US corn.
Rain forecast for Argentina's crop belt through Tuesday, but some corn is already damaged beyond repair and exports from the world's No 2 corn supplier are at risk. Decline in demand for Argentine corn seen supporting US demand for late spring and summer shipments, although a near-term demand lift was also possible, traders said.
Export sales of US corn jumped to a one-month high last week on precautionary buying ahead of the US Department of Agriculture January crop report. Price drop after the report prompted additional buying. FOB corn basis offers were steady on Friday and up about 5 to 8 cents per bushel from a week ago, with nearby values up the most due to tight supplies in the marketing pipeline. Spot CIF basis bids were up about 8 cents from a week ago.
Export premiums for soyabeans at the US Gulf Coast were unchanged on Friday on quiet demand from top importer China following solid buying by the world's top importer earlier in the week and last week, traders said. FOB soya basis offers were up about 2 to 5 cents this week.
Chinese demand for imported soyabeans was expected to be slow through the next week as markets there are closed for the week-long Lunar New Year holiday. China has booked more than 20 cargoes of US soyabeans over the past two weeks, with about two-thirds of the shipments from the Pacific Northwest and the rest from the Gulf. Wheat export premiums at the US Gulf were mostly steady on Friday amid firm demand following the recent drop in prices, traders said.
Demand inquiries from buyers in the Middle East and North Africa, including regular US customer Nigeria and private buyers in Egypt. Wheat export sales last week were the largest in two months, led by strong sales of white wheat, according to USDA data. Some feed importers, including South Korea, have been buying white wheat for shipment from the PNW amid low prices, traders said. Japan bought 185,275 tonnes wheat from the United States, Canada and Australia via a regular tender that closed on Thursday.
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