Corn export premiums at the US Gulf Coast were steady to firm on Thursday while wheat export premiums held steady, with both markets underpinned by strong global demand, traders said. Soyabean export premiums firmed in tandem with rising CIF market values, although demand for Gulf shipments was seasonally slowing as buyers increasingly turn to South American supplies for spring shipments, traders said.
Corn export demand has been largely from Mexico and from regular customers in Asia, although a late day surge in futures prices tempered demand inquiries, traders said. Corn demand, especially by South Korea, has also been blunted by abundant global supplies of often less expensive feed wheat. Feedmakers there bought 165,000 tonnes Canadian feed wheat for May-June, with prices about $40 per tonne cheaper than corn.
Japan bought 101,600 tonnes US corn for 2010/11 delivery, USDA said on Thursday. Mexico, which saw some of its corn damaged by freeze earlier this month, last week booked its largest weekly US corn purchases in four months, according to USDA data released on Friday.
China considering cuts to import taxes on a range of goods including food. Cuts would aid sales of US soyabeans and possibly corn, although US corn prices currently remain at a premium to Chinese domestic prices, traders said. Chinese demand reported on Thursday for scattered US soyabean shipments from the Pacific Northwest in March as prices there slipped to a discount to Brazilian March shipments. But traders could not confirm any fresh deals.
Private exporters confirmed the cancellation of 120,000 tonnes old-crop US soyabean sales to China, USDA said on Thursday. Japan bought 153,858 tonnes wheat via a regular tender, including 35,604 tonnes HRW and 75,385 US spring wheat. Turkey bought 300,000 tonnes wheat via a tender, including 150,000 tonnes US wheat, traders said.
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