Export premiums for corn shipped from the US Gulf Coast were mostly flat to weaker on Thursday, capped by light demand and abundant global feed grain supplies, traders said. Bumper South American crops are poised to flood the global market beginning next month, creating more competition for US shipments. Meanwhile, many importers are focused largely on hand-to-mouth which kept a lid on new sales.
Net US corn export sales last week fell to the lowest point for a single week since June 2014, according to US Department of Agriculture data. Soyabean export premiums were unchanged in quiet trade, with top importer China sourcing the bulk of its shipments from South America. Brazil's Conab raised its estimate on Thursday for the country's 2016/17 soyabean crop to 113 million tonnes, from 110.2 million tonnes previously. The group also lifted its corn crop outlook.
Tight spot supplies of corn and soyabeans at Gulf terminals as Midwest river floods halted shipments has lifted prices for near term barge arrivals. Some exporters were not offering immediate shipments amid the temporary supply uncertainty, traders said. The CME Group on Thursday lifted its force majeure declaration for the majority of corn and soyabean shipping stations as flood waters are receding.
Soft red winter wheat export premiums were flat on muted demand. Hard red winter wheat premiums held steady after rising earlier in the week on strong demand for high-protein supplies and concerns about crop damage in Kansas. FOB corn basis offers for late May shipments were about 40 cents a bushel above Chicago Board of Trade July futures.
Soyabean shipments loaded in May were unquoted. June loadings were offered around 45 cents a bushel over CBOT July futures. May SRW wheat shipments were offered about 52 cents a bushel over CBOT July futures. HRW wheat cargoes at the Texas Gulf for May shipments were offered at about 125 cents over Chicago Board of Trade July futures.
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