US Gulf basis offers for soyabeans held steady on Wednesday, but traders said the market was expected to weaken in the next few weeks as importers shift their focus to South America. The much-anticipated demand shift began to show up on Wednesday as China reneged on some deals for US soyabeans, and traders said more cancellations were expected in the coming weeks.
Offers for soyabeans delivered in March were unchanged at $120 over the Chicago Board of Trade March contract but the basis dropped by $10 per ton for April deliveries. Private exporters reported the cancellation of 245,000 tonnes of US soyabeans sold earlier to China for delivery in the 2013/14 marketing year, the US Department of Agriculture said on Wednesday. Corn and wheat offers also were unchanged, supported by concerns about political upheaval in Ukraine disrupting the market. Political instability and violence had caused some traders in Ukraine to hold back from agreeing new contracts.
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