US FOB Gulf corn offers higher on strong demand

26 Jun, 2016

Export premiums for corn shipped from the US Gulf Coast were steady to higher on Thursday, firming in tandem with rising CIF barge basis values on strong demand from overseas buyers, traders said. Some traders moved to the sidelines ahead of Britain's vote on whether to leave the European Union, a decision that could rile currency markets and impact grain values.
Lower Chicago Board of Trade corn prices have attracted renewed demand from global buyers, including South Korea and Taiwan. The US Department of Agriculture on Thursday confirmed private sales of 138,000 tonnes of US corn to South Korea, half for 2015-16 shipment and half for 2016-17.
Soyabean export premiums at the Gulf were mostly steady with a firm tone, holding near midweek highs on strong demand for old- and new-crop supplies as costs for Brazilian shipments were well above US prices, traders said. Importers in China have been in the market this week for July through October shipments, with several traded from the United States, traders said. Wheat export premiums at the Gulf were mostly steady, capped by light demand and ample world supplies.
FOB offers for July corn shipments were about 77 cents over Chicago Board of Trade July futures, which closed 5-3/4 cents lower at $3.87-1/4 a bushel. FOB soyabean basis offers for July shipments were at least 95 cents a bushel over CBOT futures, which closed 13 cents lower at $11.24-1/2 a bushel. Spot soft red winter wheat was offered at about 55 cents over CBOT July futures, which closed 4-1/2 cents lower at $4.54-1/4 a bushel. Spot hard red winter wheat offers were about 95 cents over July futures, which closed 5-1/4 cents lower at $4.27-3/4 per bushel.

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