The US markets continue to be focused on the delays and damage flooding along the Mississippi is causing. The 300kt of corn China picked up the other day was said to have been flood coverage. As the river becomes less compliant delays will occur and the additional cost of moving corn out of the PNW versus the Gulf will see most buyers happy to wait for the river to fall but those needing grain will be forced to pay the additional execution cost to move corn to the NW.
Corn export inspections for the week were high too with almost 1mt of corn loaded out of the US last week. Cash basis in Nebraska fell away as buyers once again began to gain access to locally stored grain.
Technical buying was also a dominant feature as the funds continue to clear shorts in the wheat pit. US weather is benign with further falls expected across much of the corn belt and daily temperatures also expected to rise. Weekly wheat export loadings were below the trade guess at just 340kt.
The USDA have the US pencilled in at 27.22mt of wheat exports for this current year, this is now obviously impossible without a number of 1mt weekly trades as their total to date is just 18.3mt.
In true middle east fashion Egypt has changed their payment terms back to LC 180 days. In January Egypt changed terms to payment on port inspection, the industry standard but are now back to the old method. This will see offer volume shrink and offer values rise.