US corn and soyabean export premiums at the Gulf of Mexico held mostly steady on Wednesday despite sinking futures values as demand for US supplies was dull amid bumper crops in Brazil and Argentina, traders said. Latest forecasts show increasing Brazil, Argentina soyabean production.
US Gulf soyabean FOB offers scarce for February loadings, March still available, traders said. First half March loadings at about 3-cent-per-bushel premium to last half. Slow demand on Wednesday for US soyabeans from China, the world's top importer. Seasonal slowdown in US soyabean export sales likely to be reflected in Thursday morning USDA report. Some traders said soya sales last week as low as 250,000 or 350,000 tonnes.
Corn export premiums were mostly steady as basis values in the CIF barge market, which supplies grain to the Gulf, were near unchanged on Wednesday, traders said. Bumper corn crop projections have dragged down South American premiums. In many cases, South American corn for April shipment and beyond offered for less than US corn.
Trade sources said Informa seed Brazil corn crop at 53.3 million tonnes, Argentine crop at 18.2 million. Both estimates above latest USDA forecast. Eye on potential demand from Zimbabwe, which said it needs 500,000 tonnes corn imports as drought cuts its production. US wheat export premiums were flat on Wednesday, despite sharply lower futures, as ample world supplies and high US prices continued to mostly restrict demand, traders said.
Egypt seeking cargoes of optional-origin wheat for April 10-25 shipment. US wheat is currently about $15 to $20 per tonne FOB more expensive than the most competitive supplies from Black Sea and France, traders said. US also has at least $12 a tonne freight disadvantage. Many suppliers have been aggressively pricing wheat, sometimes at below the cost of replacement, traders said.