March 30, 2012
US FOB Gulf corn prices lower while waiting for report
US corn export premiums at the Gulf Coast were lower on Thursday (Mar 29), decreasing along with the easing CIF barge market, while demand for Gulf shipments is weak in anticipation of the government acreage and stocks report.
Most of the demand for US corn this week has been for shipments from the Pacific Northwest, including the first sales to China in a month, traders said.
Some new corn Gulf sales to regular Asian buyers were possible overnight amid sharply lower futures, with spot CBOT corn down 10% from mid-March peaks. Some are likely to wait until prices show a bottom before buying large volumes.
Private Chinese buyers were making corn price inquiries on Thursday, following sales of at least six cargoes earlier in the week, but no fresh sales could be confirmed, traders said. China's JC Intelligence said importers were set to sign deals for four or five more cargoes.
USDA on Thursday confirmed private sales of 120,000 tonnes US corn for 2011/12 shipment to China, 120,000 tonnes for 2012/13 shipment to an unknown destination. The "unknown" was widely believed to be China and the announcement was seen as confirmation of sales reported on Wednesday (Mar 28).
Brazilian corn output in 2012/13 seen at a record 68 million tonnes, exports at 12.5 million, USDA attaché said.
USDA due to release its prospective plantings and quarterly US grain stocks reports early Friday (Mar 30).
