Corn export premiums for shipments from the US Gulf Coast were mostly lower on Thursday, sinking in tandem with weaker CIF barge basis values as ample spot grain supplies and forecasts for a massive harvest pressured prices, traders said. Heavy rain this week over southern Louisiana is slowing barge unloads and loading of ocean-going vessels. The delays caused a backup of corn barges at a time when heavy supplies of old-crop grain are flooding the market as Midwest farmers and elevators clear space for the upcoming harvest.
CIF corn basis bids were 2 to 6 cents a bushel lower on Thursday afternoon. The spot bid has tumbled by more than 20 cents since early last week. Demand for US corn remains solid as prices are competitive on the global marketplace. Net corn export sales last week totaled more than 1.6 million tonnes, the highest in two months, according to US Department of Agriculture data.
Soyabean export premiums at the Gulf Coast were steady to firm on robust demand from China, mostly for shipments early in the 2016/17 marketing year, traders said. US soyabean export sales last week totaled more than 3 million tonnes, mostly for new-crop shipment, on active buying by China. The sales were the largest for a single week in about 4-1/2 years, according to USDA data.
In addition, the USDA confirmed private sales of 120,000 tonnes of US soyabeans to China for 2016/17 delivery via its daily reporting system. It was the eleventh time in 12 business days in which a large soyabean sale was confirmed. Soft red winter wheat export premiums were mostly flat while premiums for hard red winter wheat were firm on good demand for high-protein varieties, and as Europe faced production problems.
Saudi Arabia is seeking 600,000 tonnes of optional-origin hard wheat via a tender closing Friday. The market is awaiting the release of USDA's monthly supply/demand reports on Friday. FOB basis offers were about 135 cents a bushel over CBOT November futures for first-half September loadings and 138 cents over for last half. September corn shipments were offered at about 97 cents over CBOT September futures. September soft red winter wheat shipments were about 75 cents over CBOT September futures. Spot hard red winter wheat shipments were offered at about 115 cents over September futures.