Soyabean export premiums at the US Gulf Coast were flat on Tuesday on slowing export demand as less expensive South American new-crop supplies flooded the market, traders said. Demand from top importer China was muted due to weakening crush margins at its processing plants, high US prices and tumbling South American prices due to an ongoing harvest.
Top Chinese soyabean trader will cancel nearly 2 million tonnes of Brazilian soyabean purchases due to shipping delays, an official with Sunrise Group said. The cargoes were for shipment though June. Some of the cancelled cargoes may be repurchased from Argentina, where port backups are shorter than the Brazilian delays, which were reported to be more than 50 days, traders said. Some cargoes purchased at high levels may be renegotiated at lower prices while the rest may remain cancelled.
Tight US soyabean supplies and high prices were expected to discourage Chinese buying of old-crop US soya, traders said. Spot US Gulf soyabean shipments were around 80 cents per bushel, or $29 per tonne, premium to Brazilian soya at Paranagua on a FOB basis. Corn export premiums at the Gulf were quietly steady amid sluggish demand for old-crop supplies.
A record-large Brazilian corn crop this season could challenge US export dominance for a second straight year, traders said. Several private forecasters have been raising their Brazil corn crop outlooks amid favourable weather. The Taiwan Sugar Corp is seeking 23,000 tonnes of US corn, 12,000 tonnes US soyabeans, via a tender closing March 21. Soft red winter wheat export premiums at the Gulf were steady to firm, underpinned by recent increases in CIF barge basis values and routine export demand, traders said. US Gulf hard red winter wheat premiums were unchanged.
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