US FOB Gulf soya premiums firmer on strong demand

Export premiums for soyabeans shipped from the US Gulf Coast were steady to higher on Thursday, supported by strong demand for shipments through early autumn, traders said. Limited available soyabean supplies in Argentina and elevated prices in Brazil have steered buyers to the United States. Brazilian soyabeans shipped from Paranagua in August were offered around 130 cents over the futures market, compared with US prices for August of around 90 cents over futures, traders said.
The unexpectedly strong demand at a time when South American shipments traditionally dominate the global marketplace has lifted US cash soyabean premiums to their highest since February. Competition with corn for loading capacity at Gulf Coast export terminals is also supporting soyabean basis values, traders said. US exporters last week shipped their largest weekly volume of corn in more than two years, according to US Department of Agriculture data. Top soyabean importer China has been booking US shipments for July through September, traders said. China is estimated to still need about 4 million tonnes of purchases for the July and August shipping periods, with more than half of that expected to be supplied from the United States, they said.
FOB soyabean basis offers for spot shipments were about 70 cents a bushel over Chicago Board of Trade July futures, which closed 21-1/2 cents lower at $11.34-1/2 a bushel. Corn export premiums at the Gulf Coast were unchanged to higher on steady demand for summertime shipments as US prices were among the lowest of all major suppliers.
Several South Korean feed importers have booked US or optional origin corn purchases this week. Late June corn shipments were offered at about 70 cents over CBOT July futures, which closed 3-3/4 cents lower at $4.25-1/4 a bushel. Hard and soft red winter wheat export premiums were mostly unchanged. Saudi Arabia's main state grain agency issued a tender to buy 300,000 tonnes of 12.5-percent protein hard wheat for September shipment. The bidding deadline is Friday. Saudi Arabia's most recent US wheat purchase was in 2014. Spot soft red winter wheat was offered at about 50 cents over CBOT July futures, which closed 5 cents lower at $4.72-1/2 a bushel. Spot hard red winter wheat offers were about 90 cents over July futures, which closed 6 cents lower at $4.50-3/4 per bushel.