US FOB Gulf corn and soyabean basis offers rose on Tuesday after futures prices closed lower for a second day, trader said. Hard and soft red winter wheat export premiums held steady amid the sell-off led by commodity funds.
"I think we'll see a change in values if the board stays at this level," said a wheat trader. Even with the break in the flat price of wheat, export demand remains limited due to relatively high US prices.
Traders are waiting for India to issue a new wheat tender to replenish depleted stocks. India's Agricultural Minister Sharad Pawar is visiting Washington, D.C., this week and meeting with the US Secretary of Agriculture and other officials.
India is expected to relax some tender requirements, such as the levels of weed seeds and vomitoxin, but still insist on paying sellers only after the wheat is delivered. Sellers are usually paid after inspection and shipment of the grain.
Australia's grain belt is facing dry weather but the Australian Bureau of Agricultural and Resource Economics said it is too early to predict cuts in winter crop production. The bureau will release crop forecasts on June 20.
Japan has issued its weekly tender for milling wheat. Soyabean export premiums climbed higher to partially offset a sharp break in futures prices, trades said.
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