Gulf corn rises

28 Jun, 2007

US FOB Gulf corn basis offers rose sharply on Tuesday on purchases by South Korea and price inquiries from Japan, traders said. Soyabean basis offers were steady to lower in a market seeing little export demand due to cheaper prices in South America.
US soyabeans for early July shipment were offered at 12 cents a bushel premium to CBoT July, compared with 25 cents discount in Brazil. Hard and soft red winter wheat export premiums rose, despite a sharp rally in wheat futures. Tight global supplies supported the market, along with tenders from India and Egypt. Iraq also was expected to make a large purchase this summer.
"Whoever moves first and buys volume will likely get the best price," said a wheat trader. "I just don't know if GASC is serious about buying right now or if they're testing the waters." Egypt's GASC tendered on Tuesday for up to 60,000 tonnes of wheat for shipment July 21-31.

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