Corn export premiums at the US Gulf Coast were steady to firm on Tuesday, with nearby values rising in step with a firmer spot CIF barge basis, traders said. Demand inquiries for US corn were quiet after corn futures climbed for a third consecutive day on Tuesday.
Spot CIF corn barge basis higher as a slowdown in barge traffic due to high water on rivers propped up nearby barge freight and amid sluggish corn movement to export terminals at the Gulf. Soyabean export premiums at the US Gulf held steady, with nearby values underpinned by higher spot CIF basis values but seasonally slowing demand keeping a lid on offers, traders said.
Improved Chinese crush margins this week have spurred demand for South American soya cargoes for late spring shipment. Demand for old-crop shipments from the US Gulf was quiet. Brazil's Paranagua port resumed normal loading of grain on Tuesday after a brief interruption due to heavy rain. Traders said prolonged shipping delays in South America this spring could divert some demand to the United States.
Several analysts have increased forecasts for Argentina's soyabean crop following recent rains. Brazil's crop is widely expected to be record-large. US wheat export premiums held steady amid a slowdown in demand. US wheat appears competitively priced in a large tender by Iraq this week, but few other tenders are outstanding. Japan is seeking 129,094 tonnes of US food wheat through a regular tender closing on Thursday.
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