Corn export premiums at the US Gulf Coast were flat to lower on Monday amid generally sluggish demand, while soyabean premiums were supported by solid demand from China, traders said. Trade subdued ahead of Tuesday's US Agriculture Department monthly crop production and world supply/demand reports, which were expected to show an increase in US soyabean production and a drop in US corn production.
Elevated prices and competition from ample global supplies of feed wheat dampening demand for US corn exports, traders said. Nearby loading capacity at US ports is very tight and buyers have little incentive to book high-priced US corn now for deferred shipment, traders said.
USDA said inspections of US corn for export last week below expectations at 24.89 million bushels below the more than 40 million bushels per week needed to reach the latest USDA corn export forecast. US soyabean buying by China accelerated after a slow week of purchases last week by the world's top importer. Private exporters sold 300,000 tonnes US soyabeans to China, including 120,000 for 2010/11 shipment and 180,000 tonnes for 2011/12, USDA said on Monday.
Poor spot soya crush margins continue to limit Chinese demand for nearby shipments, but demand for US beans for February or later and for South American new-crop soyabeanss remains solid, traders said Soyabean export inspections last week were lighter than expected at 56.9 million bushels, but about twice the average weekly pace needed to meet USDA's full-year export forecast.
US wheat export premiums were quietly steady on Monday amid lacklustre demand, traders said. US traders optimistic on booking some US wheat sales in large tender by Iraq that closed on Sunday for reply by next Sunday. Iraq normally buys higher-protein wheat such as hard red winter or Australian hard wheat. US prices appear competitive into Iraq, a trader said.
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