US FOB corn export premiums held steady at the Gulf on Wednesday but traders were keeping an eye on a strike in Argentina that was preventing corn loadings and could switch some business to the Pacific Northwest, traders said.
Soyabean and wheat were steady amid sluggish export demand. A strike by truck drivers that transport grains in Argentina has virtually halted vessel loading in Rosario, a major grain port. Vessels were waiting to load 600,000 tonnes of corn, traders said. There was one vessel waiting to load soyabeans.
The grain market was filled with rumours of cargoes being switched to loading out of the United States but traders had yet to confirm an actual switch. "The longer it lasts the bigger the chance to shift business to the Gulf," said a US trader.
There was also talk that the government might take steps that would allow exporters to declare force majeure. Force majeure frees companies from their obligations without penalties if events are beyond their control. The soyabean harvest in Brazil is proceeding without problem, which is reducing export demand for US soyabeans. A jump in Panamax rates to a three-year high is also keeping buyers on the sidelines as they wait for the market to crest and retreat, traders said.