US FOB soyabean export premiums plunged on Thursday amid pressure from cheaper supplies in Brazil, while corn and wheat held mostly steady, traders said. FOB soyabean offers fell as much as 10 cents a bushel for some shipment periods in a market that normally moves 1-2 cents at a time.
"They are still trying to compete with South American values," said a soyabean trader. Brazilian soyabeans for April shipment were offered at 4 cents discount to CBOT May, traders said.
US soyabeans for April shipment were offered at 5-7 cents a bushel premium to CBOT May, compared with 14-15 cents over on Wednesday. The sharp drop in export premiums followed a similar slide in CIF barge premiums earlier in the day.
A single barge of soyabeans for nearby shipment traded at 1 cents a bushel discount to CBOT May and was not rebid, traders said. CIF soyabeans for nearby shipment most recently traded at 8 cents premium and 9 cents premium. The lowest nearby barges have traded in recent days was 6 cents premium.
China has been buying soyabeans from both Brazil and the United States this week. Traders expected them to hold off on additional purchases to see if either basis offers or CBOT soya fall further. FOB corn offers held steady amid CBOT May corn falling below $4 a bushel for the first time since January.
Traders were awaiting results of a tender by Turkish state grain board TMO for 300,000 tonnes of corn and 75,000 tonnes of milling wheat for shipment April 2 and May 21. Soft red winter wheat export premiums were unchanged but the CIF barge market perked up after sliding lower for the past two weeks.
"There were definitely a lot more bids in the market," said a wheat trader. "With the flat price dropping, people are more comfortable putting a bid out there."
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