US corn export premiums at the US Gulf Coast were weak on Friday as demand remained generally sluggish amid elevated prices, while soybean premiums were steady with a firm tone on strong demand from China, traders said. Gulf FOB offers for October and November shipment were unquoted as loading capacity was sold out. Rumours of renewed Chinese demand for US corn continued to circulate on Friday, but traders said there was no evidence that any sales were finalised.
China was likely only taking price coverage in futures and options, traders said. Private Chinese analyst JCI pegged the government's corn purchases at 2 to 3 million tonnes for winter and spring shipment, trade sources said. US traders said there was no evidence that any sales had occurred.
However, China is expected to buy US corn eventually, as the country's demand appears poised to outweigh 2010 production, traders said. Demand from other routine US corn buyers were minimal as prices were up more than 30 percent in the past two months.
Private exporters sold 120,000 tonnes US corn to South Korea for 2010/11 shipment, USDA said. Soybean premiums were steady to firm on persistent demand from top importer China, which this week has bought US beans mostly for January to March shipment, traders said.
But Chinese demand for US soybeans seen remaining strong into April or May as late Brazil planting may delay harvest, analysts said. Buyers also uneasy about inefficient South American infrastructure which could slow movement from farms to ports.
Private exporters sold 165,000 tonnes US soybeans to an undisclosed destination for 2010/11 shipment, USDA said. The buyer was likely China, traders said. US wheat export premiums were flat on Friday in quiet trade, although demand for higher protein varieties is firming, traders said.