US FOB Gulf corn basis offers rose on Monday, supported by a resurgence in export demand and little country movement, while soyabeans and wheat held steady, traders said.
South Korea and Japan bought several cargoes of US corn on Friday and during the weekend after CBOT corn hit a one-month low. Futures prices rose slightly on Monday, but export demand was expected to remain fairly strong due to China and Argentina having little corn to export. "There's a lot of interest and we're the only game in town," said a corn trader.
Soyabean export premiums held steady, supported by little country movement and processing plants drawing soyabeans away from the Gulf, traders said. Traders continued to pay a premium for old-crop soyabeans originating in the Midwest. The soyabeans that farmers will soon harvest in the Mississippi Delta are not expected to have as much oil and protein, traders said.
Soyabean export demand remained sluggish due to cheaper supplies in South America. Hard and soft red winter wheat export premiums held steady amid sluggish export demand. Jordan is tendering to buy 50,000 tonnes of hard wheat, and South Korea passed on a tender for 52,500 tonnes of feed wheat due to high prices. US wheat may face less competition from the Ukraine this year. Insects have infested up to 15 percent of milling wheat harvested so far this year in southern Ukraine, reducing it to feed grain quality, said analysts.
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