Export premiums for hard red winter wheat shipped from the US Gulf Coast were steady to firmer on Thursday, supported by good demand for old- and new-crop supplies and by concerns about the quality of the Plains crop, traders said. A large share of the Kansas wheat crop was damaged by a recent cold snap and snowstorm, raising concerns about the amount of high-quality wheat that will be available for export. Cool, wet weather during the crop's development is also believed to have reduced protein content, reducing its value in the global marketplace, traders said.

A crop tour surveying HRW wheat in Kansas this week projected above-average yields, but it was unclear how the weather would affect production in the western part of the state. Wheat futures traded on the Chicago Board of Trade fell more than 4 percent and the dollar weakened, combining to make US shipments more attractive on the world market, traders said. Importers continue to seek old- and new-crop supplies after export sales last week hit a 14-week high. Soft red winter wheat premiums were weaker. Corn export premiums were mostly steady and soyabean premiums were steady to higher, lifted by rising costs for supplies delivered to the Gulf Coast although demand remained slow, traders said.

Flooding on stretches of the Mississippi and Illinois rivers halted loadings of the crops at some Midwest grain elevators and a five-mile stretch of the Mississippi River near St. Louis was expected to be closed to boat traffic for the rest of the week. The closure could persist until early next week, according to river forecasts. Soyabean shipments loaded in May were offered around 42 cents a bushel over Chicago Board of Trade July futures. FOB corn basis offers for May shipments were around 40 cents a bushel above CBOT July futures. May soft red winter wheat shipments were offered around 54 cents a bushel over CBOT July futures. Hard red winter wheat cargoes at the Texas Gulf for May shipments were offered at 120 cents over July futures.

Copyright Reuters, 2017