US FOB Gulf corn offers firmer

Export premiums for corn shipped from the US Gulf Coast were steady to firmer on Thursday on increased demand for Gulf shipments due to loading delays in the Pacific Northwest, traders said. At least five US corn cargoes have been switched from the PNW to the Gulf amid the 20- to 30-day loading delays that were caused by heavy rain and snow in the northwest, trade sources said.
Feed makers in Japan are expected to tap the country's emergency corn stockpiles amid a delay in US shipments. Firmer South American corn premiums also buoyed demand for US grain, which was the lowest-priced on the world market into the spring months, traders said.
Mexico's agriculture minister will lead a business delegation to Argentina and Brazil to buy yellow corn, part of a drive to lessen dependence on US exports. Soyabean export premiums were mostly steady. Tight nearby loading capacity and expectations for a slowdown in shipments once more South American soyabeans are available supported nearby premiums, traders said.
Chinese buyers still need about 2 million tonnes of March soya shipments and about 5 million tonnes for April, a trader said. Some of that demand will be supplied by the United States. Brazilian export premiums have increased despite a large crop and accelerated harvest due to slower-than-normal farmer sales to elevators, traders said. Soft red winter wheat premiums were flat on light demand while hard red winter wheat FOB basis offers were firmer amid loading delays from the US PNW.
Egypt's GASC is seeking cargoes of wheat for March 16-26 shipment via a tender closing on Friday. In its most recent tender, GASC bought only Russian wheat. FOB basis offers for March shipments of soyabeans from the Gulf were around 52 cents a bushel above Chicago Board of Trade March futures. First-half March corn shipments from the Gulf were offered around 64 cents a bushel over CBOT March futures while last-half offers were 58 cents over futures. Offers for March soft red winter wheat shipments were 75 cents over March futures, while March hard red winter wheat shipments were 140 cents over March futures.