July 12, 2013
Corn export premiums at the US Gulf Coast were steady to firm on Wednesday amid tight nearby supplies and improving demand for some post-harvest shipping periods, traders said. Vessel loading delays in South America have bolstered demand for US corn for September and October shipments. Delays at Brazilian ports were up to 60 days long, traders said.
Dock workers at Brazil’s key shipping port of Santos, the largest in South America, stopped a strike over port reform early on Wednesday but plan to walk off the job again on Thursday in support of a broader union protest. USDA on Wednesday confirmed private sales of 120,000 tonnes US new-crop corn to China. Chinese importers continued to inquire on Wednesday about prices for September through December shipments, traders said.
Taiwan’s MFIG purchasing group tendering on Thursday to buy 60,000 tonnes of corn for September 21 to October 5 shipment. Traders said South American corn was less expensive than US corn in that shipping period, but they were unsure whether South American port delays impact the buying decision.
Taiwan Sugar Corp will tender on Thursday for 23,000 tonnes of US corn and 12,000 tonnes of US soyabeans. Traders said the recent price increase may prompt the group to cancel and retender at a later date. Soyabean export premiums at the Gulf Coast were steady to firm, supported by thin nearby supplies.
Some exporters were not quoting soyabean basis offers until September and others offered nearby shipments at a steep premium to the already-high July futures contract, which chilled demand. Poor crush margins in China also limited new purchases by the world’s largest soyabean importer, traders said. Courtesy Reuters