Export premiums for corn and soyabeans shipped from the US Gulf Coast this spring and summer remained steady at historically high levels on Friday due to thin stocks, although some exporters were not posting offers and fresh export demand was muted, traders said. Cheaper South American prices are undercutting demand for near term shipments of US corn and soya.
US Gulf corn shipped in the first half of June was offered at about $293 per tonne free on board (FOB), compared with about $258 FOB at Argentina's Rosario port, according to Reuters data. Gulf soyabeans shipped in July were priced at around $580 per tonne FOB, versus less than $500 FOB at Brazil's Paranagua port, Reuters data showed. Premiums for autumn shipments of soyabeans were steady to firm on good demand from top importer China, which purchased several new-crop cargoes this week.
The US Agriculture Department confirmed private sales of 120,000 tonnes of US soyabeans to China for 2013/14 shipment and 138,000 tonnes to unknown destinations, the bulk of it for 2013/14 shipment. China has also been actively buying summertime soyabean shipments from South America, including at least one July cargo from Brazil on Friday, a trader said.
Brazil's Congress approved legislation on Thursday that opens up state-owned ports to private investment and lifts restrictions on the building of private ports. Higher Chicago Board of Trade spot corn and soyabean futures on Friday generated light farmer selling of old-crop supplies, but the selling failed to satisfy demand so basis values in the domestic and export markets remained inverted.
Wheat export premiums held steady amid thin spot supplies and quiet demand, traders said. Japan bought 147,620 tonnes of food wheat in a regular tender that closed on Thursday, including 84,722 tonnes from the United States. Indonesia could overtake Egypt as the world's top wheat importer within five years, an executive at Australia's largest grain co-operative CBH Group said on Friday.