US FOB Gulf soyabeans steady to weaker on slowing demand

Export premiums for soyabeans shipped from the US Gulf Coast were mostly steady to weaker on Friday, easing in tandem with softening CIF barge basis values amid seasonally slowing export demand, traders said. US soyabean offers are not competitive with cheaper Brazilian and Argentine supplies. Top importer China booked numerous shipments this week from the South American countries for February shipment and beyond, traders said.
China's soyabean buying is expected to slow in early February as markets there will be closed for Lunar New Year celebrations the week of February 8. Corn export premiums were steady to weak on lower CIF barge basis values and routine demand from regular importers such as Japan and Mexico. Spot CIF corn and soyabean basis bids shed a penny a bushel on Friday afternoon on weaker barge freight and on improving river navigation following weeks of flood-related disruptions. Increased farmer selling also weighed on CIF values.
Taiwan's MFIG is seeking up to 65,000 tonnes of corn from various possible origins via a tender closing on Tuesday. The early April shipment suggested US corn could be competitive because South American ports will be busy loading soyabeans, traders said. Wheat export premiums were flat on sluggish demand for US grain, with numerous exporters offering wheat at lower prices. Russia is not expected to change its current taxes on grain exports, sources said, following proposals to change them.
The USDA issued weekly export sales data early on Friday, with corn, soyabean and wheat sales last week falling within the range of trade forecasts. Corn export sales to date are trailing year-ago volumes by 26 percent, wheat sales are 16 percent behind and soyabean sales are 10 percent behind, USDA data showed. FOB Gulf soyabeans loaded in late February were offered at 81 cents a bushel over CBOT March futures, which closed 14-1/2 cents higher at $8.82-1/4 a bushel.
Corn offers for late February shipment were around 70 cents over CBOT March futures, which ended 6-1/2 cents lower at $3.72 a bushel. February and March shipments of soft red winter wheat at the Gulf were offered at about 70 cents over CBOT March futures, which closed 7 cents higher at $4.79-1/4 a bushel. Spot hard red winter wheat offers were about 115 cents over March futures, which closed 7-1/4 cents higher at $4.72 a bushel.