Wheat export premiums at the US Gulf Coast held steady on Friday, even as futures jumped, underpinned by expectations for improved demand in coming months as supplies from rival exporters in the Black Sea region run low. Benchmark wheat futures on the Chicago Board of Trade rallied 2 percent as Russia's economy minister suggested the possibility of grain export curbs due to drought-reduced supplies.
Black Sea wheat prices have already climbed to levels uncompetitive with some European prices. US wheat expected to grow increasingly competitive later this year and into next year, traders said. Corn export premiums at the Gulf were flat on slow demand as US prices were not competitive in the global market. US Gulf corn prices were nearly $50 per tonne above Brazilian prices for nearby shipments on a FOB basis, according to Reuters data. Feed wheat prices also undercutting demand for US corn.
Japan plans to import 1.21 million tonnes of wheat for use in animal feed this financial year, the farm ministry said on Friday, up 58 percent from its March estimate. Soyabean export premiums at the Gulf held steady in muted trading as poor crush margins in top importer China minimised demand, traders said.
Chinese buyers stepped up purchases of US soyabeans earlier this week after previous weeks of slow buying, but purchases were no larger than "routine" amounts for the world's largest importer, traders said. Chinese customs data showed soyabean imports from all origins at 4.4 million tonnes in August, down less than 1 percent from a year earlier. Year-to-date imports were up 17 percent. Recent rains allowed farmers in Brazil to begin planting earlier than normal amid forecasts for a bumper corn crop and possible record soyabean crop. Big crops were needed after a drought shortfall in US production this year.
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