US FOB Gulf corn and soyabean basis offers were mostly steady on Thursday but there was a lack of fresh export demand, traders said. Wheat prices were underpinned by a tender from Egypt's General Authority for Supply Commodities (GASC) to buy 55,000 to 65,000 tonnes of wheat for April 1-10 shipment. "They could buy some soft wheat," a trader said.
The trader also said GASC was considering lowering its specifications for wheat it purchases, a move he said could favour French wheat. GASC vice chairman Said el-Hefny told Reuters in Cairo that GASC was considering amending "some specifications" of wheat but gave no details.
The grain markets were shaken on Thursday by news that brokerage MF Global would set aside $141.5 million to cover losses from unauthorised trades in CBOT wheat.
The company blamed trader Evan Dooley for "substantially" exceeding his authorised trading limit. "This is like a train wreck," a grain analyst said.
CBOT March wheat futures fell $1.11, or 9 percent, to $11.69 per bushel.
Corn basis offers were steady, but traders said export demand was sluggish. Prices in the CIF barge market were higher for nearby positions amid slow farmer selling and exporter demand.
A trader said CIF corn for February shipment traded at 55 to 56 cents a bushel premium the CBOT March contract, while first-half March shipment traded at a premium of 51 cents.
There were rumours that China may remove its import tax for corn, but traders said the country was unlikely to buy any US supplies at the moment because of high prices. "I don't think it will be economical," the trader said. Soyabean basis offers were steady, with export demand remaining thin amid lower prices in South America.