US FOB Gulf corn premiums higher on thin spot supplies

Export premiums for corn shipped from the US Gulf Coast were steady to higher on Wednesday, with nearby values supported by limited spot supplies and expectations for improving demand, traders said. High water on the lower Mississippi River is slowing deliveries of grain to Gulf exporters and keeping nearby basis values elevated. The river is forecast to recede slowly in the coming days, according to the National Weather Service.
Higher Brazilian corn export prices over the past week is likely to lift demand for US corn in the weeks ahead as some regular importers, including Japan, are believed to be short bought for March shipments, a trader said. Some analysts and traders said they expect around 500,000 tonnes of Brazilian corn export sales for January through March shipment to be switched to US-origin corn.
The USDA on Wednesday confirmed private sales of 243,100 tonnes of US corn to Mexico for 2015-16 delivery. Soyabean export premiums were about steady as top importer China booked moderate purchases from the United States for near-term shipment and from South America for shipment later in the year. Improving crush margins in China prompted the better demand. China is likely to import record volumes of soyabeans in 2016 as crushers take advantage of cheap imported supplies to meet the country's rising demand for feed.
Wheat export premiums were flat on weak demand as cheaper grain from rival suppliers undercut US sales opportunities. Egypt's GASC is seeking cargoes of wheat for late February shipment, with results expected on Thursday. Traders did not expect US wheat to be offered in the tender due to high prices and stringent import quality specifications.
FOB Gulf soyabeans loaded in late February were lightly offered at about 90 cents a bushel over CBOT March futures, which closed 9-1/2 cents lower at $8.74 a bushel. Last-half February shipments were around 85 cents over futures. Corn offers for late February shipment were around 68 cents over CBOT March futures, which ended 1 cent higher at $3.68-3/4 a bushel. February and March shipments of soft red winter wheat at the Gulf were offered at about 68 cents over CBOT March futures, which closed 3 cents lower at $4.71-1/2 a bushel.