Soyabean export premiums at the US Gulf Coast held mostly steady on Wednesday, underpinned by solid demand from China and other importers, traders said. USDA confirmed private sales of 120,000 tonnes old-crop US soyabeans to unknown destinations and 120,000 tonnes new-crop soyabeans to China.
Port congestion was building at major Brazilian ports and expected to worsen in the coming weeks, possibly shifting more demand to US old-crop soya amid tight US supplies. Vessel delays estimated at 40 to 45 days at Paranagua and 25 to 30 days at Santos, trade sources said.
New-crop US soyabean export premiums held firm on steady buying by China. FOB basis offers for post-harvest shipments were 93 to 94 cents a bushel premium to futures, traders said. Wheat export premiums at the Gulf were weaker, easing from recent peaks after heavy precipitation in the Plains wheat belt eased concerns about drought-reduced production.
Recent price declines have boosted export prospects for US wheat. Soft red winter wheat was the least expensive in the world on a FOB basis. Saudi Arabia seeking 110,000 tonnes soft wheat and 440,000 tonnes hard wheat from any origin via a tender closing on Friday, with offers remaining valid to March 4.
US SRW wheat expected to be the least expensive soft wheat in the Saudi tender. An SRW sale to the country would be the first on record, according to USDA data. Wheat traders monitoring labour tension in the Pacific Northwest, where about half of US wheat is exported.
A United Grain Corp terminal locked out union workers on Wednesday. Meanwhile, TEMCO, which has three PNW elevators, agreed to a five-year contract with the same union. Funding problems are forcing top world wheat buyer Egypt to consider abandoning its regular public tenders that have been a centerpiece of world grain trade for decades. Egypt has strategic stocks of nearly 2.3 million tonnes of the grain from international and local markets, enough to last until late May, its supplies minister said.
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