US FOB Gulf soyabean export premiums steady to firm

Soyabean export premiums for shipments from the US Gulf Coast were steady to firm on Friday, underpinned by tight nearby export loading capacity and hopes that an interest rate cut in China would spur demand from the world's top buyer, traders said.
China's central bank unexpectedly cut interest rates on Friday amid its slowest economic expansion in 24 years. The move was seen as bullish for commodities imports, traders said. Chinese demand for US soyabean shipments has slowed from the recent torrid pace, although importers there were still in need of some near term shipments from the United States. Traders said at least two December cargoes from the US Gulf traded late this week.
Exporters were not posting offers for November soyabean shipments because loading capacity was fully booked. Some were not able to offer December shipments, but said the position was available at a high enough price. FOB Gulf December and January soyabean basis offers were a penny higher at 126 cents a bushel over Chicago Board of Trade January futures, which closed 1.8 percent higher at $10.39 a bushel. For the week, January futures closed about 1.5 percent higher, its first weekly gain in three weeks.
Gulf exporter costs for barge-delivered soyabeans rose on limited farmer selling and active export loadings, with the spot CIF basis bid gaining 5 cents a bushel on Friday afternoon. US Gulf export premiums for corn were mostly steady amid routine demand and light farmer selling, traders said.
This week's downturn in corn prices has narrowed the premium of US prices to rival exporters' prices, triggering some demand from traditional buyers like Japan and Mexico. The US Department of Agriculture on Friday confirmed private sales of 132,000 tonnes of US corn to unknown destinations for 2014-15 shipment. Gulf corn basis offers for November were unquoted due to a lack of loading capacity. December offers held steady at 105 cents a bushel over CBOT December futures. January cargoes were offered 95 cents over CBOT March, also unchanged. US wheat export premiums were flat as demand remained slow due to ample world supplies and largely uncompetitive US prices. Traders were awaiting the results of a snap tender by Saudi Arabia for 330,000 tonnes of wheat from various origins.