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Wheat export premiums at the US Gulf Coast were mostly steady to firm on Friday, underpinned by solid export demand and thinned stocks following recent strong sales, traders said. Persistent demand from Brazil for nearby shipments of hard red winter wheat supported HRW premiums following around 500,000 tonnes in export sales to the country over the past week.
An Iraqi tender for at least 50,000 tonnes of wheat closes on Sunday. US HRW wheat could capture at least a share of that business because hard wheat supplies from rival exporters Canada and Australia may be limited, traders said. Corn and soybean export premiums for nearby shipments were unquoted as old-crop supplies were very tight. Loading capacity at the Gulf for early new-crop shipments was also very tight so some exporters were not offering supplies for some periods from September to November. Sinking prices amid strong crop production prospects have many regular importers delaying purchases until the market reaches a bottom. Spot corn futures on the Chicago Board of Trade hit a three-year low on a continuous chart this week.

Copyright Reuters, 2013

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