US FOB Gulf corn basis offers were steady on Wednesday, with a slump in CBOT futures drawing fresh export demand, while soyabeans were firm.
Dealers said hard and soft red winter wheat basis offers were steady, with the markets waiting for results of Iraq's tender to buy 200,000 tonnes of hard milling quality wheat for July and August shipment. The tender closed on April 14.
Corn basis values were supported by fresh demand from Tunisia, Algeria and Morocco, dealers said. They were, however, unable to confirm specific deals.
"We are seeing some demand from Mediterranean countries," one dealer said.
He also said rising corn prices in Argentina amid a slowdown in farmer selling was helping to make US supplies more competitive. "US corn is becoming more competitive at the Gulf," he said of the US export point.
The market was also supported by an announcement from the USDA that exporters had reported the sale of 120,000 tonnes of US supplies to unspecified buyers for delivery in the current marketing year ending August 31.
On Tuesday, the USDA said exporters reported the sale of 133,000 tonnes to unknown destinations.
Dealers said an easing of ocean freight rates was also helping to bolster demand, especially from Asia.
Soybean basis offers were firm amid tight supplies, but lacked fresh export demand, dealers said.
One dealer said there was talk of China seeking a cargo of US soyabeans for shipment from the Pacific Northwest, but it could not be verified.
Overall Chinese demand for US soyabeans has been sluggish amid poor crush margins in the country, dealers said.
There was talk that China was attempting to delay shipment of some soya cargoes it had purchased from South America.
Wheat basis offers were mostly steady, with improved crop weather in the United States weighing CBOT futures.
Dealers said there was a lack of fresh export interest, and brushed off lingering rumours of demand from China.