Export premiums for corn shipped from the US Gulf Coast were steady to firm on Wednesday, lifted by higher CIF barge basis values, while soyabean and wheat FOB basis offers held mostly steady, traders said. Slow farmer sales and rising barge freight costs supported sharply higher CIF corn basis values at midweek. The spot CIF corn bid jumped to 70 cents over Chicago Board of Trade September futures, up 12 cents from Monday.
The recent decline in CBOT corn prices has attracted fresh demand from importers such as South Korea and Mexico, traders said. Lower Brazilian corn production due to drought and concerns that dry weather in Ukraine might clip feed grain supplies there underpinned US export prospects. Soyabean exports from the Gulf are expected to rise sharply in the coming weeks as recent old-crop sales are loaded and shipped. There are at least 11 soyabean vessels waiting to load at the Gulf for China, trade sources said.
The US Department of Agriculture is due to release weekly export sales data early on Thursday. Analysts surveyed by Reuters expect another week of sizable old-crop corn and soyabean sales. Soyabean export premiums for July shipments were 98 cents a bushel over CBOT August futures, which closed 20-1/2 cents higher at $11.22-3/4 a bushel. FOB Gulf July corn shipments were offered at about 92 cents over CBOT September futures, which closed 9-3/4 cents higher at $3.62 a bushel. July soft red winter wheat was offered at about 60 cents over CBOT September futures, which closed 1-1/4 cents higher at $4.39-3/4 a bushel.
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