Soyabean export premiums at the US Gulf Coast held steady near 3-1/2 month highs on Monday due to strong demand and tight nearby supplies, traders said. Corn premiums weakened as uncompetitive prices kept a lid on export business, traders said. Traders were keeping an eye on the Mississippi River amid concerns barge shipping will be severely restricted or halted by the end of the month due to low water levels.

That could force exporters to source higher-cost rail shipments or shift loadings to the Pacific Northwest. Ingram Barge Company, the largest US barge line, said it had not loosened draft restrictions despite "welcome rains" over the weekend. The rains did not have "a significant impact on water levels" on a key stretch of the river from St. Louis to Cairo, Ill., a spokesman for the company said. USDA on Tuesday will update supply and demand estimates in a monthly crop report. Analysts expect USDA to raise its forecast for year-end US corn inventories for 2012/13 due to weak export demand and tighten their outlook for soyabean inventories. US corn and wheat futures fell to a three-week low on Monday, while soyabeans ended higher after a seesaw session ahead of the report.

Copyright Reuters, 2012