US FOB Gulf soyabean premiums weaker on light demand

Export premiums for soyabeans shipped from the US Gulf Coast were steady to weaker on Tuesday, with nearby values underpinned by scattered demand and deferred prices weighed down by competition from South American shipments, traders said. FOB Gulf corn and wheat basis offers held mostly steady in quiet trade as demand for US shipments was slow following a jump in futures prices and stiff competition from rival suppliers.
Chinese importers have booked moderate purchases of January and February shipments from the United States over the past week, mostly for shipment from the Pacific Northwest, traders said. The USDA on Tuesday confirmed private sales of 140,000 tonnes of US soyabeans to unknown destinations. The USDA updated its US and world supply and demand forecasts on Tuesday. The agency slightly decreased 2015 US soya production but kept its output view for Brazil and Argentina unchanged. The USDA also reduced its US corn export forecast by 50 million bushels.
Flood-related river barge shipping problems continue to underpin nearby soyabean basis values. But the offers are slipping from recent highs as flooding on northern sections of the Mississippi River is easing. A barge tow accident disrupted commercial navigation on the lower Mississippi River near Helena, Mississippi, on Tuesday. A barge to hit a bridge pier and four barges broke loose, the Coast Guard said. A safety zone is in place on the river near Vicksburg, Mississippi, after a coal barge tow collided with a railroad bridge and nine barges broke free, two of which sank, the Coast Guard said.
FOB Gulf soyabeans loaded in early February were offered at about 83 cents a bushel over CBOT March futures, which closed 13-1/4 cents higher at $8.74-1/2 a bushel. January corn offers were around 63 cents over CBOT March futures, which ended 5 cents higher at $3.56-3/4 a bushel. January shipments of soft red winter wheat at the Gulf were offered at about 67 cents over CBOT March futures, which closed 12-1/4 cents higher at $4.81-1/4 a bushel. January hard red winter wheat offers were about 115 cents over March futures, which closed a 18-1/2 cents higher $4.80-3/4 a bushel.