US FOB Gulf corn basis offers stayed very firm on Wednesday with capacity mostly sold out through first-half June and a firm barge market underscoring the competition for tight domestic stocks, traders said.
FOB soyabean offers, like corn, were supported by the retreat in nearby futures prices on Wednesday as speculators cashed in profits.
Rumours of Mexico rejecting some Brazilian soya on contamination issues flew on Tuesday, but nothing was confirmed. One trader suggested Mexico looked fully supplied for soyabean needs.
Traders also questioned another rumour of Chinese inquiries for two cargoes of US soyabeans out of the Pacific Northwest.
"It doesn't make sense," said one trader, who cited the problems with Chinese crushers already scrambling to find funds to pay for soyabean cargoes at Chinese ports.
"Why would you want to sell them more right now if they can't pay for what they already have?" he said.
Overall, the FOB market was subdued as many importers expected ocean freight to ease further. Panamax rates for dry bulk cargoes on Wednesday were quoted at around $51-$52 a tonne for the benchmark US Gulf to Japan route, down from $52-54 a week earlier, Asia-based brokers said.
But there were few actual deals being done as vessel owners and charterers tried forecasting the outlook for the market.
Export prospects buoyed sentiment. Philippines tenders June 3 for 340,000 tonnes of "prompt" corn. South Korea tenders on June 8 for 2,000 tonnes of non-GMO soyabeans for August.
Jordan tenders June 3 for three 50,000 tonnes cargoes of hard wheat for LH June through LH July loading. Pakistan may soon start buying new-crop US wheat for its stocks, using GSM credits.
CCC on June 1 seeks 23,020 tonnes of HRW wheat for east Africa for LH June loading.
Egypt's GASC is still expected to retender soon for wheat after passing on offers last weekend for June 21-30 and July 1-10 loading.
HRW wheat brokers said ADM and Cargill were both buyers of May paper for 12-percent protein unit trains in the Gulf track wheat market on Wednesday, although there was no clear demand news ahead of the Jordan tender.
The Texas HRW wheat harvest has been stalled by recent rains.
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