Corn export premiums at the US Gulf Coast rose on Thursday, despite minimal export demand, as flooding that was expected to halt barge shipments on Midwest rivers sent spot CIF barge basis values sharply higher, traders said. Soyabean export premiums were also higher due to tight supplies and higher CIF values.
Mississippi River locks 16 through 24 were expected to be closed beginning on Friday because of high water following heavy rains across the Midwest. The river may crest starting on Sunday. The closures reduce the area from which exporters are able to draw supplies to terminals on the Illinois and lower Ohio Rivers and along the Mississippi from about St. Louis and south.
Corn export demand was modest as regular buyers such as Japan and Mexico, as well as other Latin American customers, looked to US supplies despite lower costs for South American grain. Loadings in Brazil and Argentina were delayed due to heavy port congestion. Soyabean export demand limited mostly to new-crop supplies. USDA on Thursday confirmed private sales of 252,000 tonnes US soybeans for 2013/14 shipment. Wheat export premiums were mostly steady, underpinned by solid export demand, mostly for soft red winter wheat. Net US wheat export sales last week were the largest since September 2007, according to USDA data.