US soyabean and corn export premiums at the Gulf of Mexico were about unchanged on Tuesday, with very limited available loading capacity in the near term underpinning values, traders said. Demand for US soyabeans remained solid, but there was a lull in demand for US corn after this week's price spike.
Poor weather at the Gulf of Mexico earlier this month delayed barge unloading and loading of ocean-going vessels. Another storm system which is expected to move through the area later this week will cause further logistical headaches for exporters. Gulf loading capacity essentially sold out through about mid-February. Tight capacity in late February keeping values underpinned, traders said. Export market activity thinned this week due to many traders away for the year-end holidays.
Taiwan's BSPA tendering on Wednesday for 40,000 to 60,000 tonnes of US or South American soyabeans for first half March shipment. Record-large Brazilian soya crop expected this spring so Brazilian exporters may be able to offer soyabeans at more competitive prices than US in the BSPA tender, one trader said.
But the US-Brazil price spread is narrow. Demand for US corn hurt by spike in futures on Monday to a six-month high, although a weaker US dollar over the past week has diluted some of that price jump for overseas buyers, a trader said. US wheat basis offers were flat on Tuesday amid poor demand and slow grain movement, traders said.
Limited demand for US wheat has been from regular buyers in Asia and Latin America. US wheat prices are the highest among major exporters. US soft white wheat prices are at least $30 to $35 per tonne (FOB) more expensive than the most competitive origins, traders said. Taiwan millers to tender next week for up to 43,700 tonnes US dark northern spring and hard red winter wheat in one cargo, a group source said.
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