Export premiums for corn shipped from the US Gulf Coast firmed on Thursday in tandem with rising CIF barge basis values as weather-delayed river shipments raised grain costs for exporters, traders said.
Barge freight rates climbed for shipments through March amid increased demand following an increase in farmer sales of corn and soyabeans since last Friday. Spot rates were up the most as fog slowed navigation on portions of the river system.
The US Department of Agriculture (USDA) on Thursday confirmed private sales of 110,400 tonnes of old-crop US corn to unknown destinations.
Soyabean export premiums were mostly steady amid seasonally slowing demand for old-crop shipments and moderate demand for new-crop supplies. Chinese importers this week have booked several cargoes of Brazilian soyabeans for March and April shipment and inquired about US new-crop prices, traders said.
Tight supplies are underpinning wheat FOB basis offers, traders said. Analysts polled ahead of Friday's USDA export sales report expect a rebound in corn and soyabean sales last week and wheat sales near the prior week's level.February corn shipments from the Gulf were offered around 66 cents a bushel over Chicago Board of Trade March futures, which closed 1-1/4 cents higher at $3.66-1/4 a bushel.
FOB basis offers for February shipments of soyabeans were 48 cents a bushel above CBOT March futures, which closed 4-3/4 cents lower at $10.70-1/4 per bushel.
Offers for February soft red winter wheat shipments were about 70 cents over March futures, which closed 7-1/2 cents lower at $4.23-1/2 a bushel. Spot hard red winter wheat shipments were 130 cents over March futures, which closed 10 cents lower $4.42-1/4 a bushel.