US FOB Gulf corn and soyabean export premiums held steady as the market awaited the start of the Midwest harvest and fresh supplies entering the pipeline, traders said.
Soft and hard red winter wheat basis offers were unchanged amid routine export demand and tight world wheat supplies. Drought was still threatening crops in Argentina and Australia, two large wheat exporters. Rain may harm the quality of the French wheat crop, which has sent European prices to a 2-1/2-year high.
Traditional buyers of European wheat, such as millers in north Africa, are asking for prices on US soft red winter wheat for September-December shipment, traders said. The millers would blend the US wheat with French wheat, if there are quality problems.
"They've got to start looking for alternatives because of the quality," said a US wheat trader. "But it's just tire kicking at the moment." Traders are also anticipating that Iraq will soon announce a wheat purchase after seeing Egypt buy wheat despite the recent increase in world wheat prices.
Iraq was expected to buy wheat before the start of Ramadan, a month of fasting that begins September 24. Iraq has not bought wheat in several months and is expected to buy 1 million to 1.5 million tonnes when it finally makes a purchase, traders said. Soyabean basis offers were steady, supported by little country movement and steady export demand. The premium for old-crop Midwest soyabeans to blend with the new-crop Delta soyabeans is shrinking as the Midwest harvest gets closer, traders said. Corn export demand has been slow this week as larger buyers such as Japan and Egypt have been quiet.