US export demand at the Gulf was muted. Import margins in China have eroded as soyameal prices declined amid fears that a bird flu outbreak would hurt feed demand. Prices for nearby soya shipments are considerably lower in South America, although vessel delays at ports of up to 60 days remain historically high. Brazilian spot shipments from Paranagua were about $40 per tonne FOB below spot Gulf prices.
Brazil’s government trimmed its soya production outlook due to lower yields, but the country is still forecast to harvest a record 81.9 million tonnes. Corn export premiums at the US Gulf Coast were flat to weaker amid sluggish export demand as South American corn was offered at a large discount to US prices. China is set to import 6 million to 7 million tonnes of corn in 2013/14 after crop damage and weather delayed planting in the country, analysts said. US corn imports less expensive than domestic corn.
High inflation and export hurdles could result in less corn planting in Argentina next season. US wheat export premiums at the Gulf were lower on a slowdown in demand. Many importers have covered their April and May needs and were awaiting more information about the upcoming new-crop harvest. US Agriculture Department will release its April supply and demand report on Wednesday. Trade expecting US corn ending stocks to rise nearly 200 million bushels.