Corn export premiums at the US Gulf Coast were flat on Monday, capped by sluggish demand and steady competition from lower-cost suppliers in South America and the Black Sea region, traders said. FOB Gulf soyabean basis offers were mostly steady, but the market had a firm tone on seasonally rising demand for US shipments and thinning supplies from South America.
Wheat export premiums were unchanged amid abundant global supplies and limited demand to US grain.
Corn importers have been booking purchases largely on a hand-to-mouth basis as global supplies are ample and prices are trending lower. Much of the recent corn sales activity has been from routine importers of US corn, traders said.
The USDA on Monday confirmed private sales of 487,680 tonnes of US corn to Mexico for 2015/16 delivery. Traders said the sale was a routine harvest-season purchase of rail-delivered grain.
USDA also reported 240,000 tonnes in US soyabean sales to unknown destinations for 2015/16 shipment, a sale traders said was likely to China.
A Chinese trade delegation will travel to Iowa to sign letters of intent to buy US soyabeans on Thursday.
The signings are likely to trigger sizable daily sales announcements by USDA, but traders stress that the event is largely political and that terms of many of the deals will be determined at a later date.
FOB Gulf soyabean basis offers for shipments this month were unquoted as loading capacity was effectively sold out. October and November offers were around 107 cents over CBOT November futures, which closed 7 cents higher at $8.74-1/4.
Corn basis offers for the first half of October were 61 cents over December futures, which closed 7-1/4 cents higher at $3.84-1/2. Last-half October shipments were offered around 65 cents over futures.
SRW wheat basis offers for October were 75 cents over CBOT December futures, which closed 10 cents higher at $4.96-3/4.