FOB Gulf Grain-Corn offers firm as CIF climbs, futures drop

Thu May 31, 2012 5:48pm EDT

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May 31 (Reuters) - Export premiums for corn shipped by barge
to the U.S. Gulf climbed on Thursday in tandem with rising CIF
basis values amid signs of rising demand after a recent drop in
prices, traders said.	
    * Spot corn futures on the Chicago Board of Trade hit a
1-1/2 year low this week. New-crop December futures hovered just
above 1-1/2 year lows hit two weeks ago.	
    * Regular importers, including Mexico and China, inquired
about prices on Thursday, although no fresh sales were
confirmed. The improved interest followed several days of quiet
demand.	
    * Nearby FOB basis offers for corn at the Gulf bounced from
one-month lows, with June and July offers up about 5 cents a
bushel on Thursday. Nearby CIF basis bids were about 4 cents
higher.	
    * Demand for mid-summer shipments of U.S. corn to many Asian
buyers restricted by aggressive South American prices, with
Brazilian and Argentine grain offered at least $20 per tonne
cheaper. U.S. corn more competitive from September and beyond.	
    * However, Chinese buyers remain focused almost exclusively
on U.S. corn due to worries about unapproved GMO strains in
South America. U.S. corn also favored by neighboring Mexico due
to proximity.	
    	
    WHEAT, SOYBEANS	
    * Wheat export premiums at the U.S. Gulf held mostly steady,
capped by rising supplies due to an advancing harvest and
routine export demand.	
    * Iraqi wheat tender, announced Wednesday, 
expected to favor U.S. wheat as Canadian offers should be scarce
amid the pending end of single-desk marketing at its Wheat
Board. Australian offers may not be aggressive due to limited
capacity, while European offers may also be scarce.	
    * Soybean export premiums at the U.S. Gulf were mostly
steady on light to moderate demand, with poor crush margins and
adequate port stocks limiting purchases by top importer China,
traders said.	
    * Estimates ahead of the release of Friday's USDA weekly
export sales report: wheat sales at 350,000-500,000 tonnes, corn
at 450,000-650,000 tonnes, soybeans at 450,000-700,000 tonnes.
 	
    	
    To check displays of FOB basis, click on following:	
    U.S. FOB Gulf corn 	
    U.S. FOB Gulf soybeans 	
    U.S. FOB Gulf SRW wheat 	
    U.S. FOB Gulf HRW wheat 	
    	
    LINKS 	
    * FOB U.S. Gulf Grain                   	
    * U.S. grain export summary             	
    * Brazil soybean export prices          	
    * Brazil corn export prices             	
    * Argentine grain prices                	
    * Russian grain prices                  	
	
 (Reporting by Karl Plume in Chicago; Editing by David Gregorio)
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