Export premiums for wheat and corn shipped from the US Gulf Coast were flat to lower on Tuesday, pressured by ample supplies and cheaper offerings out of the Black Sea region and South America, traders said. Quality concerns also weighed on demand in US soft wheat, with rains late in the growing season reducing grain quality of the winter wheat harvest in the Midwest. Some US shippers could struggle to meet specifications from international buyers, the traders said.
The quality issues, coupled with higher ocean freight costs, were likely to make US soft wheat uncompetitive for a tender issued earlier on Tuesday by top global wheat importer Egypt. Egypt has sourced much of its wheat needs in recent months from Russia, Ukraine and Romania.
US corn also faced stiff competition internationally, with Taiwan purchasing 130,000 tonnes of corn from Brazil for shipment in December - a time when US supplies typically the cheapest following the harvest.
Global corn sales have picked up in recent days as futures fell to the lowest levels in about six weeks, but a bulk of the sales have gone to South American sellers, traders said.
South Korea's Major Feedmill Group (MFG) purchased 134,000 tonnes of corn that could be sourced from the US, South America, South Africa or the Black Sea, traders said.
Soyabean export premiums were steady to firm, supported by better export demand and more inquires for autumn new-crop loadings out of the US Pacific Northwest. Top importer China was said to have purchased a PNW soyabean cargo for October or November loading. Bids for soyabean shuttle trains to the PNW were firm through January, suggesting increased demand.