US FOB corn and soyabean export premiums were slightly weaker on Monday, pressured by higher futures prices and a slowdown in fresh export sales, traders said.
CBOT corn hitting a fresh 10-year high and contract highs in overnight trading prompted some farmer selling before the open. However, country movement tapered off by mid-morning with producers holding out for even higher prices.
US corn export demand is steady but recent rallies in futures prices are curbing demand. CBOT December corn has climbed 29 cents in the last two weeks to $3.71-1/2 per bushel, with some analysts expecting prices to hit $4 before the end of the year.
"The rally has really slowed things down," said a corn trader. South Korea feed makers bought 110,000 tonnes of optional-origin corn late on Friday for arrival in May and June but buyers made few new inquiries on Monday, traders said.
At the moment, South Korea would most likely receive US corn, traders said.
Corn prices are still strong in China due to harvest delays and exporters scrambling to meet obligations. Argentina continues to suspend export registrations of new-crop corn.
US soyabean export demand was steady, but traders expected business to slow without a sharp fall in CBOT soya. China bought several cargoes of soyabeans for shipment from the US Gulf last week but was also interested in soyaoil. Demand for soyameal in China has been sluggish but soyaoil demand is strong. Hard and soft red winter wheat export premiums were unchanged amid little export demand. "We're pretty lacklustre right now," said a wheat trader.
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