US soyabean export premiums at the Gulf of Mexico were flat on Wednesday as demand from overseas buyers was dampened by high US prices and lower prices in South America, traders said. Corn export premiums held mostly steady despite weaker CIF barge market values as export demand for US corn remained strong, traders said.
China buys up to eight cargoes soyabeans in South America this week for August shipment. Market on alert for any cancellations of US old-crop soyabean sales to China. USDA weekly export sales report on Thursday expected to show net old- and new-crop soya sales at 50,000 to 250,000 tonnes. Third consecutive week of net reduction in old-crop sales is possible, traders said.
CORN, WHEAT Corn demand remains strong as US prices very competitive on the world market, traders said. USDA weekly export sales for corn seen at 650,000 to 1 million tonnes last week. Wheat export premiums flat amid slow demand. US wheat still not competitive with wheat sourced elsewhere, with freight disadvantage to some key markets.
Spread between US wheat and other origins has narrowed in recent weeks, but US still at a premium. Traders said US soft wheat about $5 a tonne more expensive than French, $15 more than Russian. Egypt's GASC seeks wheat for July 11-20 shipment. Russia to remain Egypt's top supplier of wheat despite quality row. Market awaiting results of latest Iraq wheat tender which closed on Sunday. Traders said Canadian or Australian wheat would likely be competitive, with a slim chance for some US.