Export premiums for corn and soyabeans at the US Gulf Coast were mostly stable on Thursday amid a lull in demand, traders said. Spot CIF basis bids and FOB basis offers little changed from late Wednesday, traders said. Export markets "extremely quiet," with many people on vacation or working reduced hours because of the holidays, a trader said. There was "hardly anyone around" to do business, he said.
FOB wheat basis offers at the US Gulf Coast were mostly steady due to slow demand. Weekly US export sales expected to be lackluster because foreign buyers have been absent during the holidays. Analysts predict corn sales will be 400,000 tonnes to 600,000 tonnes, soyabean sales will be 300,000 tonnes to 600,000 tonnes, and wheat sales will be 200,000 tonnes to 350,000 tonnes.
There is some talk Mexico, a routine buyer of US corn, has returned to the market for more grain, traders said. Sluggish foreign demand for soyabeans should encourage moderate deliveries of the oilseed against the Chicago Board of Trade January futures contract on first notice day on Friday, traders said. US ethanol producers are shipping millions of gallons of the biofuel south to Brazil to make up for a shortfall. Brazilian imports of US ethanol could grow in 2012.
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