The US Army Corps of Engineers will proceed with its plan to draw down water releases from upriver reservoirs on the Missouri, impacting Mississippi River shipping. But it said autumn rain and dredging operations could keep the Mississippi open through the middle of December. Nearby Gulf soyabean FOB basis offers held at 130 cents a bushel over Chicago Board of Trade January, up 16 cents from a week ago. The lofty basis reflected the higher cost of replacing Gulf supplies with rail-delivered soya, traders said.
Chinese demand for US soyabeans for January shipment remained strong, but February needs may be filled by US and South American soya. USDA confirmed private sales of 115,000 tonnes US soyabeans to China for 2012/13 delivery. Corn export premiums at the Gulf were mostly flat to lower on poor export demand amid uncompetitive prices, traders said. Higher shipping costs due to low water problems on the Mississippi River increased prices in the export market.
Export purchases this week by Asian importers showed South American corn was being offered at $20- to $25-per-tonne discounts to US supplies. US wheat export premiums at the Gulf were unchanged in quiet trade. Soft red winter wheat was competitively priced in the world market, but demand has been lacking. Hard red winter wheat prices were not competitive, but demand around the globe for hard milling wheat was solid.