Export premiums for soyabeans at the US Gulf Coast were mostly steady on Wednesday, underpinned by moderate demand from top buyer China and by tight supplies in the export pipeline, which kept the CIF barge market well supported, traders said.
Spot CIF barge basis bids climbed to the highest in 2-1/2 months on active export loadings at the Gulf and limited farmer sales. Exporters scrambled for nearby barge loads of soyabeans to fill existing export commitments and to have supplies on hand in case low water on the Mississippi River stems the flow of soyabeans from the Midwest.
Low water on the Mississippi River from St. Louis to Cairo, Illinois - a critical stretch that includes its confluence with the Illinois River - may trigger draft restrictions or an outright closure of the river early next month. USDA on Wednesday confirmed private sales of 120,000 tonnes of US soyabeans to China for 2012/13 shipment.
Corn export premiums at the Gulf were mostly steady, underpinned by tight supplies following weeks of poor farmer selling and by improving demand for early 2013 shipments. A recent spike in Brazilian export premiums due to thinning exportable stocks and a lack of export offers in Argentina will allow US exports to rebound from their worst slump in decades, traders said. South Korea's MFG bought 130,500 tonnes of optional-origin corn via a tender. Traders said the lack of South American offers suggest the source will be the United States.
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