Overnight Grains Higher

Grains are mostly higher on the overnight markets following the US Thanksgiving Day holiday. News that Egypt bought US wheat, not Russian, French or any other wheat offered is seen as being supportive to the grains complex.

Egypt, the world’s largest wheat importer, agreed to buy 55,000 metric tons of US wheat from Alexandria Grain at $174.99/tonne FOB for shipment Dec21-31 yesterday.

The is dollar headed for its biggest weekly decline in almost three years against the euro on speculation policy makers’ steps to spur growth and lending will reduce demand for the relative safety of U.S. assets.

South Korea bought 55,000mt optional origin corn from Glencore overnight at $169/tonne, reportedly the cheapest corn purchased so far this year by any Korean miller.

Japan said it had bought 600,000mt various origin corn so far this month, including 75-90,000mt Ukraine corn, which offers a $15/tonne discount to US corn at the moment. As with wheat however, Ukraine corn is inferior in quality to US corn, and Japanese buyers are reluctant to purchase too much of it due to broken kernels.

China slashing interest rates earlier in the week is also fostering ideas that this decision will pave the way for increased imports of foreign grains.

The recent Chinese melamine scandal is also seen as increasing imports of "safer" foreign raw materials. "Contamination is not merely endemic in China's dairy products or exported chocolate bars. With melamine having been found in fish and eggs, foreign feed grains are being substituted in place of contaminated domestic feed materials," says one Chinese news agency.

At 8.30am GMT wheat is trading around 3-5 cents firmer, with corn unchanged and soybeans 2 1/2 cents higher.