Export premiums for corn shipped from the US Gulf Coast were steady to higher on Thursday on moderate export demand from traditional buyers and rising CIF barge basis values, traders said. Recent slowdowns in rail shipments from the Corn Belt to Pacific Northwest export terminals have raised corn costs at PNW ports and diverted more near-term demand to Gulf terminals, traders said.
But demand was concentrated in nearby loading positions as a large South American corn crop has increased competition for US shipments in April and beyond, traders said. The US Department of Agriculture on Thursday confirmed private sales of 110,000 tonnes of old-crop US corn to Japan and 253,488 tonnes to unknown destinations. So far this week, the agency has confirmed 847,588 tonnes in mostly old-crop corn sales via its daily sales reporting system.
FOB soyabean basis offers weakened on seasonally slowing demand for US supplies as less costly Brazilian soya is beginning to come to market, traders said. Brazil's January soya shipments may approach a larger-than-normal 2 million tonnes, they said. The USDA on Thursday increased its forecast for Brazilian soya output in a monthly report by 2 million tonnes and raised exports by 1.1 million tonnes. Argentine production and exports and Chinese imports were unchanged.
Eroding soya processing margins in China and a glut of imported soyabeans following months of active buying have reduced demand from the world's top importer. Net US soyabean export sales last week were below expectations for a second straight week and the second lowest in eight months, according to USDA data on Thursday.
Higher futures prices and stiff global competition limited demand for US wheat, keeping FOB basis offers mostly flat. February corn shipments from the Gulf were offered around 62 cents a bushel over Chicago Board of Trade March futures, which closed 1 cent higher at $3.58-1/4 a bushel. FOB basis offers for February shipments of soyabeans were 50 cents a bushel above CBOT March futures, which closed 28-3/4 cents higher at $10.40-1/4 per bushel.
Offers for February soft red winter wheat shipments were about 65 cents over March futures, which closed 7-1/2 cents higher at $4.26-1/4 a bushel. Spot hard red winter wheat shipments were 120 cents over March futures, which closed 13 cents higher $4.44-3/4 a bushel.