US soyabean export premiums at the Gulf of Mexico were about steady on Monday amid tight global supplies and good demand helped by a weak US dollar, traders said. Continued interest from China for January soyabean shipments, but no sales confirmed on Monday, traders said. China pledges to extend its corn and soyabean stockpiling program into the new crop year, increases subsidies for wheat to encourage planting.
Stockpiling program seen holding up China's domestic prices, likely encouraging imports of cheaper beans from US and South America. Short term impact is minimal due to heavy sales already on the books, but could add demand in long term. Potential demand hit by rally in CBOT soyabean futures to 5-1/2 week highs on Monday partly offset by dollar weakness, which increases buying power of those holding other currencies.
Nearby CIF soyabean and corn barge basis values firm on lack of harvest progress, need for fresh supplies at the Gulf for immediate loading. Need for soyabeans more pronounced than for corn following big export sales for October loadings. Wheat export premiums were flat on Monday, but the market had a weak tone due to poor demand and ample supplies of cheaper wheat from competing origins, traders said.
Saudi Arabia bought 550,000 tonnes Canadian wheat in a tender. Traders said a strong euro hurt prospects for EU wheat while high prices hurt US prospects. A trader said US wheat landed in Saudi Arabia was $29 to $30 a tonne more expensive than the winning Canadian bids before Monday's surge in futures. US corn export premiums were generally steady on Monday amid sluggish demand, traders said. Corn export prospects dampened by slight premium to Brazilian corn values. CBOT corn futures rise to 3-1/2 month high on Midwest weather worries, rising dollar.
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