FOB Gulf Grain-Corn offers hold on routine demand, rising supply

Nov 8 (Reuters) - Export premiums for corn at the U.S. Gulf
Coast were mostly steady on Friday amid routine demand and
rising supplies from a record-large U.S. crop, traders said.
    * U.S. soybean export premiums were flat in quiet trade
following a spike in prices after a bullish U.S. Department of
Agriculture report on Friday.
    * U.S. wheat export premiums were unchanged.
    * USDA on Friday raised its U.S. corn crop estimate to a
record high 13.989 billion bushels and soy crop estimate to the
third largest ever at 3.258 billion bushels. It also cut global
	
soybean ending stocks and increased global corn stocks. * USDA also increased both U.S. corn and soybean export forecasts, although corn exports were still seen at the second lowest level of the past 20 years. * Soybean futures on the Chicago Board of Trade rallied more than 2 percent following the USDA report, while corn added 1-1/2 percent and wheat slipped 1/2 percent. * FOB basis offers for corn, soy and wheat shipments in November and much of December were unquoted as Gulf export facilities have little to no loading capacity available following big forward sales earlier this year. * Importers have been booking routine purchases of U.S. corn for January and February shipment, entice by prices near the lowest levels in three years. Mexico was an active buyer for that period this week, a trader said. * U.S. corn prices for the first quarter of 2014 were competitive on the world market as U.S. prices have dropped compared with Brazilian and Ukrainian corn values. * Chinese importers' U.S. soybean needs have been filled for the near term and they have been eyeing early 2014 shipments. * China imported 4.19 million tonnes of soybeans in October, according to the customs administration, down 11 percent from
the prior month. But November and December imports were expected to surge to a two-month total of 12.5 million tonnes, according to the CANONIC think-tank. * Algeria's state grains agency OAIC bought around 650,000 tonnes of optional-origin milling wheat via a tender for shipment in January and February. Most of the wheat was expected to be sourced from France. (Reporting by Karl Plume in Chicago, editing by G Crosse)

About the author

Comments

explore

Stories from our other publications