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US FOB Gulf soyabean basis offers were steady to weaker on Thursday, pressured by the lack of export demand and high ocean freight, traders said. Corn export premiums held steady and rose slightly for nearby shipment, reflecting little country movement as farmers plant the new crop.
Hard and soft red winter wheat basis offers were unchanged and have held steady for the past week as little export business takes place. Farmers will begin harvesting a new crop in a few weeks, which could pressure values.
Nigeria, one of the biggest buyers of US wheat, is seeing its mills struggle with poor margins due to wheat prices rising during the past year. "Things don't look very good over there," said a wheat trader. "They have scaled back their demand."
Soyabean export demand is also weak, partly due to China having poor crushing margins and buying fewer cargoes. Holidays in Asia were also limiting the business taking place this week, traders said.

Copyright Reuters, 2007

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