Export premiums for corn shipped from the US Gulf Coast held mostly steady on Friday, underpinned by moderate demand and firm CIF barge basis values, traders said. FOB Gulf soyabean and wheat basis offers were flat in quiet dealings ahead of the Christmas holiday weekend, with many traders already away for the holiday.
Chicago Board of Trade futures markets closed early on Friday and will remain closed through Monday for the holiday. CIF corn barge basis values climbed this week on solid demand for shipments through the winter. Rising rates for rail shipments of grain from the Midwest to Pacific Northwest have shifted more export demand to Gulf terminals, traders said.
US corn is competitively priced in the global market through March, traders said. Cheaper South American grain is poised to compete with US shipments from April and beyond. Export demand for US corn remains concentrated among traditional buyers such as Mexico and Japan, traders said. The US Department of Agriculture on Friday confirmed private sales of 110,800 tonnes of US corn to undisclosed destinations for 2016/17 shipment.
Traders are monitoring outbreaks of bird flu in Asia, a highly important market for feed grains. Seasonally slowing demand anchored US Gulf soyabean export premiums, with top importer China well supplied for shipments through February, traders said.
Low wheat stocks in India could force the country to import 6 million tonnes of the grain. But India's food minister said government agencies will not import wheat in the near term after private players ramped up overseas purchases. January corn shipments were offered at about 58 cents over CBOT March futures, which closed 1-1/2 cents lower at $3.45-3/4 a bushel. January US soyabean shipments were offered at about 57 cents a bushel over CBOT January futures, which closed 5-1/2 cents lower at $9.89 a bushel. Offers for January soft red winter wheat shipments were about 70 cents over CBOT March futures, which settled 3-1/2 cents lower at $3.93-1/2 a bushel.
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