US wheat export premiums mostly flat

September 07, 2013


Wheat export premiums at the US Gulf Coast were mostly flat on Thursday amid muted demand as another international tender by top importer Egypt was expected to bypass US wheat in favour of less expensive origins, traders said. Egypt’s GASC set a tender to buy an unspecified amount of wheat for shipment November 1-10, with results expected on Friday. It was the group’s fourth tender in less than two weeks.

Wheat from the Black Sea region was expected to be the most competitive in the GASC tender, traders said. As in other recent tenders, higher-priced US wheat may not be offered at all, they said. Corn export premiums at the Gulf were mostly steady amid rising supplies from an expected record-large US harvest and limited demand. Tight export loading capacity at the Gulf kept a floor under values. South Korea’s NOFI is seeking to buy 140,000 tonnes of corn and 60,000 tonnes of feed wheat via a tender closing on Friday.

Other feedmakers from South Korea, typically very price-sensitive buyers, were expected to also tender for corn in the coming days following recent US price declines, traders said. Soyabean export premiums were unquoted in nearby positions due to thin old-crop stocks and limited available export capacity for the earliest new-crop shipments from the Gulf, traders said. Deferred basis offers were about steady.

Nearly all of the elevation capacity for October and November was sold out following heavy forward sales over recent months, traders said. Some Chinese importers inquired about early autumn shipments following a steep futures drop on Wednesday followed by a mild rebound on Thursday, but traders could not confirm that fresh sales were finalised.

China has been buying nearby Argentine shipments this week as prices were below US prices. China’s soyabean imports are expected to drop in September and October following heavy purchases in previous months and sales from reserves, but imports should rebound in November and December, industry sources said. The US Department of Agriculture will release weekly US export sales data early on Friday, delayed a day due to Monday’s federal holiday. New-crop corn and soyabean sales were expected to slip from the previous week’s sales, analysts said. Courtesy Reuters

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