Corn export premiums steady at US Gulf Coast

Corn export premiums at the US Gulf Coast were mostly steady with a firm tone on Friday amid moderate demand from regular US corn customers as futures prices dropped, traders said. Benchmark US corn futures on the Chicago Board of Trade plunged more than 6 percent on Friday after the US Agriculture Department pegged quarterly stocks well above market expectations.
Spot futures were down more than 20 percent this month. Regular US corn importers in Asia and Latin America, many of which had little coverage for October through December, have taken advantage of the price drop in recent weeks and booked supplies. South Korean importers have purchased between 10 and 15 cargoes of US corn in roughly the past two weeks, traders said. Japan, the top US corn importer, has been a less active buyer on the break with no more than 10 cargoes purchased in that time, they said.
Taiwanese importers have at least two upcoming tenders next week, including MFIG seeking up to 60,000 tonnes and Taiwan Sugar seeking a combination cargo of corn and soya. Chinese demand for corn outpacing its domestic production so imports are likely at some point in the current marketing year. Sharply lower futures on Friday renewed speculation, but no deals were reported, traders said. A poll of analysts suggested China's corn imports could total 4 million tonnes in 2011/12. US soyabean export premiums at the Gulf were steady to firm amid plunging futures and higher CIF barge market values, traders said.