Basis bids for hard red winter wheat delivered by rail to the US Gulf Coast were firm on Thursday on solid demand and limited supplies of high-protein grain sought by global buyers, traders said. FOB Gulf HRW premiums were steady to firm. Iraq bought about 450,000 tonnes of US milling wheat in a direct deal. The purchase is the latest of a string of deals for US wheat this season, Iraq's largest in several years.
Soft red winter wheat basis values at the Gulf were steady to firm, supported by limited available loading capacity and tight supplies in exporters' hands, traders said. Basis bids for soyabeans shipped by barge to the US Gulf Coast were flat to lower, pressured by ample supplies in the export pipeline. Export premiums were mostly unchanged, underpinned by seasonally good demand. Corn premiums were steady to firm on slow farmer selling and improving export demand following a futures price decline over the past week.
The US Department of Agriculture on Thursday confirmed private sales of 845,820 tonnes of old-crop US corn and 510,540 tonnes of new-crop corn to Mexico. Traders said Mexican millers typically book large volumes during harvest time lows, scattering shipments through more than a year. CIF Gulf soyabean barges loaded in November traded at 12 cents a bushel over Chicago Board of Trade January futures, steady with trades a day earlier. Full-month November barge bids slipped to 9 cents over futures, the lowest spot basis bid in six years. Spot FOB offers were around 40 cents over January futures.
Early November corn barges were bid steady at 33 cents above the CBOT December futures contract. Spot FOB corn offers were 51 cents over futures. October soft red winter wheat barges were bid 61 cents over CBOT December futures. Spot export premiums were 80 cents over futures. October CIF hard red winter wheat bids were 210 cents over the K.C. December contract for 12 percent protein grain. Spot export premiums were around 215 cents over futures.
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