Corn and wheat export premiums at the US Gulf Coast were mostly steady to higher on Friday amid strong global demand and firming prices for grain shipments from rival exporters, traders said. US corn has grown more competitive on the world market as prices for grain from rival suppliers have jumped in recent weeks while US prices were steady to lower.
Very little corn was offered from Argentina and Brazilian corn prices have soared amid the stronger real against the dollar. Ukrainian corn prices have also soared and offers were very thin for November and December shipments. At least 10 cargoes of US corn, or roughly 600,000 tonnes, were sold over the past two weeks for shipment mostly from January to March 2014 to private Chinese importers who expected to receive their import quotas from the government in the coming weeks, a trader said.
Other private Chinese buyers were expected to make US corn purchases once the government quotas are issued as domestic corn costs were at a large premium to import values due to government prices supports. Buyers from Mexico and Columbia inquired about prices on Friday for US corn shipments on Friday, traders said. Steady demand from Brazilian millers underpinned US hard red winter wheat export premiums, although supplies in the pipeline have increased as commercial elevators liquidated more of their supplies in storage after the inverse in futures prices evaporated, traders said. Soaring old-crop Argentine wheat prices and limited offers for new-crop wheat, which farmers will begin harvesting in November, ignited a US wheat futures rally on Friday.
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