Export premiums for corn shipped from the US Gulf Coast were firm on Thursday, rising in tandem with higher CIF barge basis values as higher prices for loadings in the Pacific Northwest boosted demand for Gulf-loaded vessels, traders said. Slumping Chicago Board of Trade corn futures prices also underpinned cash basis values.
Nearby CIF barge basis values rose by as much as 4 cents per bushel on Thursday. A jump in rail freight rates by about 30 cents a bushel over the past three weeks has elevated costs for West Coast grain exporters and was likely to shift some US PNW corn loadings to Louisiana Gulf elevators, a trader said. Export demand for US corn remains concentrated among traditional buyers such as Mexico and Japan, traders said. The US Department of Agriculture on Thursday confirmed private sales of 100,400 tonnes of US corn to Mexico for 2016/17 shipment.
Cheap South American corn prices are keeping a lid on demand for US shipments from April and beyond, traders said. Seasonally slowing demand anchored US Gulf soyabean export premiums on Thursday. Top buyer China has most of its import needs filled through February and South American shipments are competitively priced from March and beyond, traders said.
China imported more than 7.8 million tonnes of soyabeans in November, a 6-percent increase from the same month a year earlier, according to Chinese customs data. The imports included 5.6 million tonnes from the United States, 32 percent higher than November 2015. Wheat export premiums were flat on muted demand, with US shipments facing headwinds in international markets from the strong dollar, traders said.
January corn shipments were offered at about 58 cents over CBOT March futures, which closed unchanged at $3.47-1/4 a bushel. January US soyabean shipments were offered at about 57 cents a bushel over CBOT January futures, which closed 12-1/4 cents lower at $9.94-1/2 a bushel. Offers for January soft red winter wheat shipments were about 70 cents over CBOT March futures, which settled 2-1/2 cents lower at $3.97 a bushel. Spot hard red winter wheat cargoes were offered at 115 cents over March futures, which closed 1-1/4 cents lower at $4.08 a bushel.