US FOB Gulf corn export premiums were softer on Monday as barge freight eased and export demand shifted to South America, traders said. Soyabean basis offers held steady and soft wheat export premiums rose after a sharp decline last week.
Despite some rain, Brazil and Argentina continued to make good progress harvesting bumper crops of corn and soyabeans. Export demand was expected to be limited to routine tenders, with perhaps some fresh business from South Korea for June or July shipment, traders said.
Corn for shipment in the first half of April was offered at 27 cents a bushel premium to CBOT May, down from 30 cents premium on Friday. Basis offers were also lower through May but held steady for June shipment and beyond. "It feels a bit weaker up front," said a corn trader. Soyabean export premiums held steady after falling last week amid a slow down in export demand.
Export demand was limited to a tender from South Korea for 150,000 tonnes of non-GMO soyabeans for shipment between January-July 2008. The state-run Agro-Fisheries Trade Corp said it was tendering earlier than usual because it expects higher prices and low stocks of US soyabeans next year.
Non-GMO soyabean plantings are expected to decline this spring but no more than the overall reduction in US soyabean acreage, traders said. Soft red winter wheat basis offers rose, following a firmer trend in the CIF barge market. "I think it got so cheap for March that it had to come back a little," said a wheat trader. SRW wheat for April shipment was offered at option to CBOT May, up from a 5-cent discount last week.
Traders said the rise in prices began well ahead of a tender by Egypt's GASC for optional-origin wheat for shipment for shipment April 16-30. Traders were not optimistic that Egypt would buy any US SRW wheat, given large supplies of high-quality Russian wheat available at cheaper prices, on a delivered basis. In a tender last week, Egypt bought 120,000 tonnes of Russian wheat, mainly due to high ocean freight making other origins more expensive on a delivered basis.