Corn and soya premiums firm at the US Gulf

26 Aug, 2010

US corn export premiums at the US Gulf were firm on Tuesday and soyabean premiums were steady to firm, supported by solid demand and tight loading capacity at US ports, traders said. Wheat export premiums were higher as loading capacity in coming months was tight following heavy sales of other commodities, mostly soyabeans, for shipment this fall. HRW premiums underpinned by rail congestion near the Texas Gulf.
Traders said export capacity at the Louisiana Gulf was essentially sold out through at least mid-November, although exporters may be willing to load a vessel sooner if the buyer is willing to pay a premium. The lack of available capacity supporting export premiums for corn and soyabeans despite sinking CIF basis values.
CIF values were mostly lower on Tuesday as rising supplies from the Delta harvest and the nearing Midwest harvest discouraged aggressive bidding. Lull in Chinese soyabean demand on Tuesday. The world's top soyabean importer is estimated to have about 80 percent of its needs filled through the end of the year, a trader said.
Argentine lawmakers will try to agree on a bill to cut taxes on grains exports on Tuesday, an issue that has prompted farmer protests in the past and halted grain movement from the key South American exporter. Nearby shipments of US corn have slowed awaiting more higher quality new-crop corn needed to blend up the glut of subpar corn currently at the Gulf.

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