Export premiums for corn and soyabeans shipped from the US Gulf Coast were flat to lower on Tuesday amid generally weak CIF barge basis values and light demand, traders said. FOB basis offers for US wheat were steady to firm on slow grain movement and lower futures prices, although demand for US supplies remained light.
A strong dollar continues to restrict US export demand after the greenback hit an eight-month high against a basket of currencies on Monday.
Egypt's GASC set a tender to buy wheat from global suppliers for shipment December 21-31. Results are expected on Wednesday.
Traders expect Black Sea region wheat, or possibly French wheat, to be most competitively offered in the GASC tender. Exporters are not expected to offer US wheat, which is around $20 per tonne higher, on a FOB basis, than the cheapest Russian wheat, according to traders.
Chicago Board of Trade wheat futures fell more than 2 percent on Tuesday as US winter crop conditions improved in a weekly report and as export demand remained sluggish.
Gulf soyabean export premiums were under pressure from limited demand as Pacific Northwest cargoes were being offered at lower prices.
US soya is also expected to face increased competition from Argentine shipments from late December and beyond as more supplies are expected to become available following the country's presidential election. US corn is competitively priced compared with other origins for shipments through at least the end of the year, but demand for those periods was limited as many importers had their immediate needs well covered.
Argentine corn premiums for March through May shipment were around 40 cents a bushel over futures prices, which was at least 24 cents cheaper than US Gulf corn on an FOB basis, a trader said.
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