Export premiums for old-crop soyabeans shipped from the US Gulf Coast held mostly steady on Friday on seasonally slow demand while new-crop basis offers were firm on improved demand prospects, traders said. A Brazilian truckers' strike lost momentum on Friday, reducing fears of an export disruption during the country's peak export season.
Talk that top soyabean importer China may reduce import tariffs later this year helped to underpin new-crop US soyabean basis values, traders said. The cut could lower costs by about $10 to $12 per tonne for importers, an analyst said. Soyabean basis values were up about 2 cents in fourth-quarter 2015 shipment periods, traders said. The bulk of near term soyabean demand is being filled by newly harvested Brazilian and Argentine supplies. Chinese buyers booked at least three Brazilian cargoes for June and July shipment, a trader said.
FOB corn basis offers were mostly steady, underpinned by tight near term export loading capacity and firm CIF barge basis values. The USDA on Friday confirmed private sales of 121,400 tonnes of corn to unknown destinations for 2014/15 delivery. CBOT corn futures fell to a five-month low on Friday on expectations for accelerated planting in the coming week. The price drop was expected to attract fresh export demand next week, traders said.
FOB wheat basis bids were flat to lower on sluggish demand for US supplies, with several rival suppliers offering grain at lower prices. Nearby soft red winter wheat offers eroded in tandem with sinking CIF values. FOB Gulf May soyabeans were offered 85 cents over CBOT May, which closed 8-1/2 cents lower at $9.69-3/4 per bushel. FOB Gulf corn for first-half May shipment was offered at 85 cents over CBOT May futures, which closed 6-1/4 cents lower at $3.64-1/2 a bushel. FOB Gulf SRW wheat for May shipment was offered at 95 cents over CBOT May futures, which closed 11-3/4 cents lower at $4.86. FOB Gulf HRW wheat offers for May were 130 cents over KCBT May futures, which ended 14-1/4 cents lower at $5.02-1/4.
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