CIF Gulf corn and soya rise on export demand

20 Jun, 2006

US CIF Gulf corn and soyabean basis values were higher on Monday in adjustment to lower CBOT futures overnight and brisk export demand, traders said.
Soft red winter wheat prices also hedged higher, helped by fresh export sales. Egypt's GASC bought 230,000 tonnes of wheat at its tender, including 55,000 tonnes of soft red winter wheat and 120,000 tonnes of soft white wheat from the United States.
"I'm happy Egypt bought US wheat," a river trader said. The sale to Egypt, one of the top markets for US wheat, comes after a steady decline in wheat exports to the country due to high prices in the United States. US wheat prices, however, have dropped sharply in recent weeks amid pressure from the advancing SRW harvest and better than expected yields.
Traders said corn basis values were higher, supported by good export demand and amid lower futures. CBOT corn and soya futures were lower in overnight trading amid weekend rains in the drier areas of the western Midwest and outlooks for cooler weather over the next week.
CBOT soyabeans were called to open 5 to 10 cents a bushel lower, and corn 2 to 4 cents lower.
Traders said recent declines in CBOT corn futures were helping to draw export demand.
USDA said exporters had reported the sale of 319,200 tonnes of new- and old-crop corn to Japan and an unidentified buyer. The sales were likely made late last week.

Read Comments