US FOB Gulf corn export premiums climbed higher on Tuesday, following a rise in interior prices amid a lack of farmer selling, while soyabeans held steady, traders said. Wheat basis offers had a firm tone amid a new tender from Iraq and talk that India may soon resolve phytosanitary issues that have kept out US wheat.
India has sent a delegation of government officials to meet with US representatives in Washington, D.C., this week, traders said. India's strict phytosanitary regulations kept out US wheat during its last round of tenders, in which it bought 5.5 million tonnes. This year, India may buy 4 million to 5 million tonnes. The State Trading Corp has already tendered to buy 1 million tonnes with bids due May 21.
Iraq has also issued a new tender for hard milling wheat with bids due May 30. Traders are still waiting for a response from Iraq to a tender that closed on May 2. Iraq is usually takes several weeks, or even months, to conclude a tender due to violence making it difficult to conduct routine business in the war-torn country. Corn export premiums climbed due to the lack of farmer selling as producers plant a new crop.
Interior corn mills and ethanol plants are raising bids for corn, which has caused exporters to lift prices to remain competitive. Export demand has been weak lately, due to high ocean freight. Israel will tender on Thursday to buy up to 56,000 tonnes of US or South American corn for June/July shipment.
The Philippines will tender on Thursday to buy up to 80,000 tonnes of corn for June/July arrival. High corn prices could cause Taiwan, a top buyer of US corn, to seek cheaper supplies from South America. Taiwan currently imports 5 million tonnes of corn a year, nearly all from the United States. In the future 20 percent of that grain could come from other countries, said the Taiwan Feed Industry Association.