Corn export premiums lower at US Gulf Coast

Export premiums for corn at the US Gulf Coast were lower on Monday, sinking in tandem with weaker CIF values amid sluggish export demand, traders said. Competition from lower-cost corn suppliers and from cheaper feed wheat restricting demand from many buyers for higher-priced US corn.
Top US corn importer Japan booked some purchases late last week for near-term delivery. Demand from non-regular buyers remained slow, traders said. Corn CIF basis bids and FOB basis offers eased by 1 to 2 cents a bushel on Monday. CIF values slipped on weak barge freight, higher futures and adequate supplies in the river market which supplies Gulf exporters.
Corn futures on the Chicago Board of Trade rallied more than 3 percent to a 2-1/2 week high on Monday, the strongest rally in more than 2 months. No import interest reported from Chinese buyers despite profitable import margins, traders said. China stockpiling domestic corn in northeastern provinces through April, which may halt imports during that time, analysts said.
US soft red winter wheat export premiums were steady to weak on Monday amid dull export demand, while hard red winter wheat premiums were firm, traders said. HRW values supported by strong domestic demand which limited supplies flowing into the export market, they said.
Rising prices and tighter stocks of Black Sea wheat lessening competition in the global wheat market, but Argentine prices currently still more price-competitive than US wheat. Many key wheat importers, including regular US wheat buyer Nigeria, have been hand-to-mouth buyers in recent months and were believed to be short bought. Nigeria booked some US wheat for January shipment late last week and may be in the market for more spot-shipped wheat this week, traders said.
Some Middle Eastern importing nations also believed to be short bought and likely to issue tenders by early next year, possibly before the January 12 USDA crop production report. Soybean export premiums at the US Gulf were steady on Monday amid quiet early week demand from top importer China. Traders monitoring dry weather in South American soybean areas as reduced output may underpin demand for US soybeans.