Corn and wheat export premiums at the US Gulf Coast were firmer on Wednesday as slow farmer selling kept supplies in the export pipeline very tight while export demand was routine, traders said. Export demand for US corn remains limited to regular customers filling mostly hand-to-mouth needs.
Strong domestic demand for corn, from both livestock and ethanol sectors, bidding aggressively and diverting supplies from the export market, which is keeping basis values supported, traders said. Strong US ethanol margins boosted output to a nine-month high last week, according to EIA data.
US soyabean export premiums at the Gulf held steady on routine demand and tight supplies in the export pipeline due to slower-than-normal harvest-time farmer sales, traders said. Talk that China may have purchased at least 2 cargoes of US Gulf soyabeans could not be confirmed. USDA export sales report on Thursday expected to show US corn sales last week at 400,000 to 600,000 tonnes, soyabeans at 450,000 to 750,000 tonnes, wheat at 350,000 to 450,000 tonnes, trade sources estimated.