Corn export premiums at the US Gulf Coast held mostly steady on Monday, underpinned by tight spot supplies in the export pipeline and good demand prospects after futures hit a two-week low, traders said. Lower prices expected to attract renewed buying interest from regular importers in Asia and Latin America.
Traders could not confirm talk of Chinese demand for old-crop US corn, but prices were near levels that have previously triggered buying. Earlier-than-normal corn planting and crop boosting rains across the US Corn Belt over the weekend fuelling bearish price outlook so some importers may delay purchases in hopes that prices sink further. Farmers, who own the majority of unsold old-crop corn, awaiting stronger prices before selling, traders said. Basis is inverted as exporters trying to encourage farmers to move grain into the market sooner.