US corn export premiums at the Gulf of Mexico were firm on Monday amid higher CIF barge values and weaker futures. Soyabean basis held steady, but the market had a firm tone due to continued Chinese demand. Shrinking size of drought-hit Argentine soya crop and steady demand from China for US soyabeans supporting values.
USDA said exporters sold 110,000 tonnes of US soya to China and 120,000 tonnes to unknown. Trade sources said that unknown was also likely China. Latest Argentine soyabean production forecasts put crop down as much as 20 percent from year ago. Corn basis values underpinned by recent decline in futures and by lack of farmer selling, traders said.
USDA said Monday that 5 percent of US corn was planted as of April 19, versus 14 percent on average. Soft red winter wheat export premiums were steady and hard red winter wheat values were steady to firm as futures prices dropped in tandem with broader commodities markets.
Traders awaiting result of Iraq wheat tender for at least 50,000 tonnes which closed Sunday. US wheat likely uncompetitive in Iraq tender amid lower priced wheat available elsewhere, traders said. Australia 2009/10 wheat output could fall 1 percent if decade-long drought persists. Saudi Arabia farmers abandoning wheat production more than expected, raising import needs.