Hard red winter wheat export premiums for shipments from the US Gulf Coast were steady with a firm tone on Thursday, supported by strong global demand for high-protein wheat and tight supplies from rival exporters, traders said.
Saudi Arabia issued a tender to buy 595,000 tonnes of hard wheat for shipment in December and January. Traders said US HRW wheat could capture a large share of the business amid quality problems in Australia, Canada and Europe. Grain merchants expected additional hard wheat purchases by Morocco and Algeria as crop woes in Europe shifted demand to the United States. Demand from China has also increased as futures prices recently hit multiyear lows and as ocean freight costs were very low, traders said.
Low-protein US HRW wheat was competitively priced in a tender by Egypt's GASC on Thursday, but the offers were disqualified as GASC sought soft wheat. Egypt ultimately purchased 180,000 tonnes of Russian wheat. Syria struck a deal to buy 1 million tonnes of Russian wheat after its poor harvest.
Soft red winter wheat premiums at the Gulf Coast were flat on light demand and limited export loading capacity as elevators there are busy loading corn and soyabean shipments, traders said. Corn and soyabean export premiums were weaker on Thursday, easing in tandem with lower CIF barge basis values. The US Department of Agriculture on Thursday confirmed private sales of 126,000 tonnes of US soyabeans to China and 115,000 tonnes to unknown destinations for 2016-17 delivery.
Corn and soyabean export sales last week likely slowed from the previous week, according to analyst estimates ahead of Friday's weekly USDA export sales report. Soyabean cargoes shipped in October and early November were offered at around 75 cents a bushel over Chicago Board of Trade November futures, which closed 10-3/4 cents higher at $9.56-1/4 a bushel.
October corn shipments were offered at about 65 cents over CBOT December futures, which closed 12-1/2 cents higher at $3.49-1/2 a bushel. SRW wheat October shipments were offered around 95 cents over CBOT December futures, which closed 19-1/4 cents higher at $4.16 a bushel. October HRW wheat cargoes were offered at 130 cents over December futures, which closed 15-1/2 cents higher at $4.14 a bushel.
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