FOB Gulf corn, soya and wheat quietly steady

25 Dec, 2009

US corn, soyabean and wheat export premiums at the Gulf of Mexico were quietly steady on Wednesday in subdued dealings ahead of this week's Christmas holiday, traders said. Basis offers were unquoted for December, January and at least the first half of February as Gulf loading capacity was essentially sold out, traders said.
Soyabeans for February shipment offered at 20 cent per bushel premium to March. Demand for US soyabeans remains solid, with US prices competitive with South American prices through at least March. But favourable South American crop weather expected to boost yields and likely pressure prices to a point where US prices will no longer be competitive.
Recent drop in futures have helped to stimulate some demand for US soyabeans despite a firmer dollar, which typically would reduce export demand, traders said. USDA on Wednesday said private exporters sold total of 367,000 tonnes US soyabeans to China, Italy and unknown for 2009/10 and 2010/11 delivery.
However, Taiwan's BSPA passed on a tender to buy a February cargo of US soyabeans, citing high prices. BSPA bought a cargo of Brazilian soya for March. Traders expect USDA export sales report to show soyabean sales last week at 950,000 to 1.25 million tonnes. China's December soya imports seen at 4.58 million tonnes, second largest month ever, the commerce ministry said. Some trade forecasts even larger.
Corn export premiums were about steady on Thursday, with nearby offers unquoted due to lack of capacity and deferred values underpinned by moderate demand. South Korea's KOCOPIA bought 55,000 tonnes US corn for shipment in February or March. Thursday's weekly USDA export sales report expected to show corn sales last week at 550,000 to 750,000 tonnes, below prior week's marketing year high of 1.227 million.
US wheat export premiums were unchanged amid quiet trade ahead of Friday's Christmas Day holiday. US prices are the highest among major exporters so export prospects are dim. Russia's state grain trader UGC seeking 40 percent of the country's growing export market, open to private investors both domestic or foreign.

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