US FOB Gulf export premiums for corn and soyabeans rose on Tuesday following a sharp drop in futures prices, traders said. Offers for new-crop soft red winter wheat rose sharply due to concerns about cold temperatures killing some of the crop. Hard wheat export premiums were unchanged.
"It's firmed a lot since the freeze," a wheat trader said. After freezing temperatures for several nights in a row, soft wheat conditions fell sharply in Arkansas, Missouri, Illinois and Indiana. Kansas, the top state for hard wheat, suffered damage but wheat conditions actually improved in Oklahoma, another key state.
SRW wheat for June and July shipment was offered at 15 cents a bushel premium to CBOT July, up from 5 cents premium on Monday. Just last week, new-crop wheat was offered at a 15-cent discount. Export demand is already slow due to high prices and higher basis offers may slow it further. Export demand was limited to routine tenders from Japan and Taiwan.
"I can't remember the last time I wrote a contract," the wheat trader said. FOB corn offers climbed higher for all shipment periods to partially offset the lower futures prices at the Chicago Board of Trade. Corn export demand was weak and limited to mostly routine business with Mexico and Japan, traders said.
South Korea passed on tender to buy 495,000 tonnes of corn for October and November delivery. Taiwan Sugar Corp passed on tender to buy a small amount of US corn and soyabeans for May/June shipment. The Philippines will hold a tender on May 17 to buy 80,000 tonnes of corn for June/July arrival. In a previous tender, Manila opted to buy corn from Argentina.