US corn export premiums at the Gulf Coast were higher on Friday as tight old-crop stocks and slow farmer sales supported basis values, even as futures rallied, traders said. Spot corn futures on the Chicago Board of Trade rose more than 8 percent this week on historically tight old-crop supplies and strong demand from domestic users. Domestic demand prevented more corn from flowing to Gulf export terminals.
Export demand for corn was minimal amid surging prices and cheaper available supplies in South America. But offers from exporters for nearby shipments of corn were thin as sourcing a large volume of the grain was currently very difficult. US Gulf FOB prices were $35 to $38 per tonne higher than South American prices, according to Reuters data.
South Korea's NOFI bought a cargo of US corn in a tender overnight, along with some corn from India, traders said. Other regular corn importers like Japan and Mexico believed to still need shipments of old-crop corn, but demand was muted on Friday. US soybean export premiums at the Gulf Coast were steady to firm on tight supplies and solid demand from top importer China.
USDA confirmed private sales of 60,000 tonnes old-crop US soybeans and 350,000 tonnes new-crop to China, along with 120,000 tonnes old-crop beans to Egypt. USDA also announced 285,000 tonnes in sales to China earlier this week. Traders said Chinese importers bought about 30 cargoes of soybeans this week from all origins. Farmer strike in Argentina raising concern about delays to export shipments as farmers have halted sales for a week. US wheat export premiums at the Gulf were quietly steady ahead of the weekend, with few international tenders outstanding.
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