Corn export premiums steady at US Gulf Coast

Corn export premiums at the US Gulf Coast mostly held steady on Tuesday amid tight supplies and limited demand for Gulf shipped grain, traders said. Corn values underpinned by confirmation of a large sale to Mexico, most or all of which will be shipped via rail.
Mexico bought 548,640 tonnes of US corn for 2011/12 marketing year delivery, 274,320 tonnes for 2012/13 delivery. It was the seventh-largest single-day US corn sale on record, USDA records show. US corn demand has improved from a sluggish pace in April and early May amid limited available supplies from Ukraine and South America, traders said.
Recent dip in US corn prices attracting more demand, including from key Asian buyers such as South Korea and Japan. Traders eyeing possible corn demand from China as margins for new-crop imports were profitable and as margins for old-crop imports improved, yet remained negative. China's NGOIC said 2011/12 imports may total 1.6 million tonnes.
Soyabean export premiums at the US Gulf were flat to lower, with new-crop values pressured by a lack of demand and signs of stronger-than-normal competition from South America at the start of the US export season, traders said. Bumper South American soya crops and a slowdown in Chinese demand earlier this year mean more South American beans will be available beyond their traditional season. China lifted a seven-month price cap on retail vegetable oil prices, which could help improve lackluster margins and may open the door to more imports, sources said.
Wheat export premiums were mostly steady amid slow grain movement as the winter crop harvest was under way and limited demand from export markets amid historically elevated prices, traders said. Japan seeking 160,801 tonnes US food wheat via a regular tender closing on Thursday. Iraq to import 1 million tonnes more wheat by the end of 2011 after booking 1.5 million tonnes since the start of the year, a Grain Board official said.