Soft red winter wheat export premiums at the US Gulf Coast held mostly steady on Friday amid hopes that top importer Egypt would buy the US-origin grain in an international tender closing on Saturday, traders said. Egypt's GASC set two tenders on Friday to buy an unspecified amount of wheat for shipment January 15-31 and February 1-10.
SRW wheat currently is the cheapest soft wheat on the world market on a FOB basis, but the higher cost of freight to Egypt could diminish that cost advantage, traders said. A US purchase would be GASC's first from the world's top wheat exporter since April 5. Hard red winter wheat export premiums were unchanged in quiet trade. Corn export premiums were steady amid light to moderate demand, but offers were thin for January and February shipments due to uncertainty about how much corn would be available if shipping problems on the Mississippi River persist, traders said.
Low water on the mid- Mississippi River forced numerous barge companies to restrict drafts to 8 feet for any vessels that will be transiting the St. Louis to Cairo, Illinois, after mid-December. A shipping halt may occur if the river drops further, cutting off supplies from the Illinois River and the Mississippi north of Cairo. Mexico bought about 50,000 tonnes of US corn on Thursday, likely to be shipped by rail. Demand from regular Asian buyers remained restricted by high prices. Soyabean export premiums at the US Gulf Coast were steady to firm, underpinned by solid demand from top importer China and tight supplies at the Gulf due to river shipping problems and a lack of farmer sales.