Soyabean export premiums at the US Gulf Coast were steady to firm on Friday, supported by tight old-crop supplies and worries about new-crop production amid a worsening US drought, traders said. US soyabean prices were competitive in the world market, although recent price spikes have kept many global buyers on the sidelines. Benchmark US soyabean futures hit an all-time high of $17.77-3/4 a bushel on Friday.
China, the world's top importer, bought fewer cargoes than normal this week. Chinese buyers were mostly covered for their import needs into October, about half covered for November and less that 50 percent covered for December, a trader said.
Some previously unpriced US soyabean purchases by China were forced to be priced this week at costs much higher than buyers had anticipated, raising concerns about defaults, traders said. Brazilian soyabeans are essentially sold out until the next harvest, with old-crop premiums near historic highs. Brazil's 2012/13 soya harvest may reach a record 82.3 million tonnes due to a surge in plantings.
Corn export premiums at the US Gulf were flat to lower on slow demand, with South American and Black Sea corn prices at steep discounts to US values, traders said. Corn use by animal feeders in Japan is at a 20-year low. Soaring US prices and growing export competition were seen eroding US corn purchases by its top customer. Benchmark US corn futures hit an all-time high of $8.28-3/4 a bushel on Friday as hot, dry weather was likely to further damage the drought-battered crop.
Comments
Comments are closed.