US FOB Gulf HRW wheat offers firmer

10 May, 2017

Export premiums for hard red winter wheat shipped from the US Gulf Coast firmed on Monday, supported by recent declines in futures and expectations that US wheat was priced competitively for sale to Iraq, traders said. Major global wheat buyers - including Iraq, Algeria and Jordan - sought global offers for wheat shipments. In the Iraqi tender, US wheat was cheaper than supplies shipped out of Canada and Australia, traders said. Offers were to remain valid until Thursday, May 11.
K.C. wheat futures have declined from last week's roughly six-week high, making the HRW wheat variety slightly more competitive in global markets and pushing up basis offers. HRW wheat cargoes at the Texas Gulf for May shipments were offered at 125 cents over July futures, up about 5 cents. Export offers for corn and soyabeans held mostly steady, supported by relatively tight supplies at the Gulf after the Mississippi River closed at St. Louis last week, halting barge shipments. The river reopened on Monday, according to the US Coast Guard.
Japan, Mexico and Egypt were inquiring about shipments of US corn while top global soya importer China started the week on the sidelines, traders said. Deals were likely to be limited until after the US Department of Agriculture released its monthly supply and demand report, due on Wednesday. The government will make its first supply forecast for the autumn US corn and soyabean harvests. Soyabean shipments loaded in May were offered around 42 cents a bushel over Chicago Board of Trade July futures.

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