US soyabean export premiums at the Gulf of Mexico were firm on Thursday following higher values in the barge market, while corn and wheat premiums were steady, traders said. Lull in soyabean demand from China this week after recent strong US sales to the world's top soyabean importer.
Some US soya cargoes said to have been cancelled early this week sold to new buyers. Increase in China's soya buying target and shrinking South American soya crop due to drought seen supporting US soyabean export prospects. China's near-term supplies appear abundant so focus to turn increasingly to new-crop supplies.
China raises domestic soyabean buying program target by 1.25 million tonnes. Taiwan seeking 40,000 to 60,000 tonnes soyabeans from US or Brazil in May 5 tender. Soyabean CIF barge values steady to firm amid strong demand from summer positions and lacklustre farmer selling.
CORN, WHEAT Corn basis offers steady amid solid demand from regular US customers following recent drop in prices and ocean freight costs. Baltic Exchange main sea freight index rises modestly after falling four previous days. Wheat values capped by sluggish demand for US wheat amid high prices. South Korean feedmaker buys 220,000 tonnes of US corn but passes on wheat tender.
South Korean food processors seek 55,000 tonnes US or South American corn for September arrival. Egypt's GASC buys 60,000 tonnes Canadian wheat in latest tender. Least expensive US wheat bid $4 a tonne above winning Canadian bid. Freight from Gulf puts US wheat at further price disadvantage, traders said. Trade awaiting results of Iraq tender for at least 50,000 tonnes optional-origin wheat High price could again exclude US wheat, traders said.
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