US corn export premiums at the Gulf Coast held mostly steady on Wednesday in muted trade as buyers stepped to the sidelines after futures prices plunged nearly 5 percent on a bearish government crop production forecast, traders said. Soyabean export premiums were mostly steady to slightly higher, with some values climbing in tandem with a higher CIF barge basis as futures prices fell more than 6 percent.
The US Department of Agriculture pegged US corn and soya harvests above expectations on Wednesday despite concerns that overly wet weather and flooding trimmed production. USDA also lowered its US corn and soyabean export forecasts and raised exports for Brazilian corn and soyabeans and Argentine soyabeans. The agency also raised its Chinese soya imports view by 1.5 million tonnes, but traders said a pullback appeared likely in a future report after China allowed its currency to weaken further after a devaluation of the main reference rate on Tuesday.
Traders expect a pickup in demand for US corn once buyers return to the market as Gulf prices are about 5 cents a bushel below Brazilian prices on a FOB basis for September shipments. Still, fourth quarter 2015 competition from South American corn should trim US exports, traders said.
September soya shipments from the Gulf were competitive in the world market as South American suppliers had little on offer for that period. Argentine soyabeans remain competitively priced in the fourth quarter, traders said. FOB wheat basis offers were quietly unchanged on limited demand, with US exports struggling to compete with rival suppliers.