Corn export premiums for shipments from the US Gulf Coast held about steady on Tuesday amid hopes for near term sales to Brazil after the country lifted an import tax in response to tight domestic supplies and high prices, traders said.
Brazil's government decided to lift an 8 to 10 percent tax on corn imports from outside the Mercosur trading bloc in a move the market has been anticipating for a week. Imports of up to 1 million tonnes will be exempt for 6 months.
US corn continues to face competition in other markets from cheap and abundant supplies of feed wheat. Still, demand for US corn has risen amid rising South American corn prices, traders said.
The USDA on Tuesday confirmed private sales of 241,516 tonnes of US corn to unknown destinations for delivery in the current and next marketing years.
US soyabean export premiums were higher on Tuesday, rising in tandem with firm CIF barge basis values and concerns that crop damage in South America could limit late-season shipments from Argentina and Brazil, traders said.
The pace of soyabean purchases by top importer China has topped trade expectations this season while crop prospects in South America have declined under adverse weather, traders said. The USDA confirmed private sales of 380,000 tonnes of US soyabeans to Mexico for delivery in the current and next marketing years.