US FOB Gulf corn export premiums for nearby shipment weakened on Friday as bids fell in the CIF barge market that supplies export elevators. Soybean and wheat basis offers held steady, although export demand was limited for both commodities due to cheaper supplies from other countries.
Corn export premiums at the Gulf rose about 4-5 cents a bushel this week as exporters needed to buy additional barges to load vessels at the Gulf. Supplies have been tight due to farmers being reluctant to sell old-crop corn with futures prices below $4 a bushel.
On Friday, CIF corn for June shipment was offered at 49 cents a bushel premium to CBOT July, down from a high this week of 51 cents premium. Corn cash prices were expected to remain firm with traders seeing signs of good export demand this summer. Ocean freight rates have retreated from record highs, which could encourage more buying by customers in Asia who focus on the delivered price.
Soybean export premiums fell 4-7 cents this week, pressured by lower prices in South America. China is buying one cargo of US soybeans for every five to 10 cargoes it buys from South America, traders said. Panamax rates fell for a second week due to less demand for shipping coal and grains.