US FOB Gulf soyabean basis offers fell on Wednesday on thin export demand, while corn and wheat were mostly steady, traders said. Export demand for US soyabeans continues to lag due to a seasonal shift in business to South America.
However, prices in Brazil are rising to levels that could tip demand in favour of US soyabeans held over from the harvest last September.
"A lot of farmers in Brazil are not recouping their costs of production and are unwilling sellers," said a soyabean trader. "If that trend continues, the US is going to pick up some business from South America."
Instead of Brazilian soyabeans being cheaper than US supplies by 30, 40 or even 50 cents a bushel, only a few pennies separate offers, on a FOB basis.
Soyabeans shipped in late May or June from Brazil's main grain port of Paranagua cost 30 cents a bushel premium to the July Chicago futures contract.
US soyabeans shipped from the Mississippi Gulf at the same time cost 30 to 34 cents premium, traders said.
Corn export premiums were steady after an active day of trading in the CIF barge market.
Traders say that about 2.5 million bushels of corn changed hands.
Corn for May shipment traded at 27 cents a bushel premium to CBOT July on Wednesday. Corn for shipment in the last half of May traded at 29 cents premium. Corn for shipment May 25-31 traded at 31 cents premium, traders said. June corn traded at 32 cents premium.
Corn basis values were climbing despite slow export demand this week.
Japanese markets are closed for Golden Week holidays and Chinese buyers are engaged in week-long Labour Day celebrations.
Hard and soft red winter wheat values were mostly steady but with a weak tone due to little export demand, traders said.
Offers for soft red winter wheat for June and July shipment fell to 20 cents a bushel premium to CBOT July, down from 22 cents premium on Tuesday, traders said.
Crop scouts touring Kansas said the hard red winter wheat looked good in the northern and central parts of the state but conditions continue to decline in the west.
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