Wheat export premiums mostly steady

September 15, 2013

Wheat
Wheat

Wheat export premiums at the US Gulf Coast held mostly steady on Friday on light demand for the soft red winter variety and moderate demand for higher-protein hard red winter wheat, traders said. Brazilian millers bought several cargoes of US HRW wheat this week, but volumes were lighter than in recent weeks. The millers have been exploring other sources of milling wheat and may have booked some Canadian wheat late this week, a trader said.

Japan bought 113,572 tonnes of US, Canadian and Australian food wheat via a regular weekly tender. Quality concerns with wheat crops in Russia and Ukraine could undermine exports from the Black Sea region’s two top suppliers, traders and analysts said. Corn export premiums were unchanged on Friday but higher on the week as tight supplies in the export pipeline supported prices. Newly harvested corn has mostly moved to US domestic users, including southern US supplies which normally flow directly to the export market.

US corn exports will have to battle with price-competitive Brazilian and Ukrainian supplies this autumn. Brazil was an active soyabean exporter since its harvest and was now turning its attention to corn. Newly signed trade agreements with Colombia and Peru should support US corn demand from the two countries, both of which had been buying South American corn.

Soyabean export premiums at the US Gulf were mostly steady despite quiet demand on Friday. Tight elevation capacity at Gulf terminals kept a floor under prices. October and November capacity at the Gulf was effectively sold out following strong forward soyabean sales this summer. A Chinese trade delegation visiting the United States was expected to sign agreements next week to buy a large volume of US soyabeans. Although the letters of intent are not binding sales contracts, some exporters declare the agreements to USDA, which are then reported as sales per daily reporting rules. Courtesy Reuters

Published in ZaraiMedia.com

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