Export premiums for soyabeans shipped from the US Gulf Coast held unchanged on Monday, supported by steady buying by China but capped by expectations for a record harvest in South America, traders said. FOB corn and wheat basis offers were flat on light to moderate demand.
Barge shipping woes kept a floor under basis values in the cash market, traders said. Frigid weather in the US Midwest has increased ice buildup on the Illinois River and low water on the lower Mississippi River prompted draft restrictions on loaded barges, they said. Soyabean export demand is concentrated in near term shipping positions as new-crop South American supplies are cheaper in deferred shipping positions, traders said.
The US Department of Agriculture on Monday confirmed private sales of 264,000 tonnes of US soyabeans to China, the ninth daily soyabean sales announcement in 11 days. The agency also confirmed 128,000 tonnes of US corn sold to Japan. US corn is competitively priced in the world market through February. However, demand remains restrained by large global supplies of low-cost feed wheat.
Brazil's corn crop is projected to reach 88.3 million tonnes, including a 59.9-million-tonne winter crop, private consultant AgRural said. Both would be record highs. China will further cut corn plantations next year in areas of low productivity to help trim swelling inventories, state radio cited the country's agricultural minister as saying on Monday.
January US soyabean shipments were offered at about 57 cents a bushel over Chicago Board of Trade January futures, which closed 15-1/4 cents lower at $10.21-1/2 a bushel. January corn shipments were offered at about 54 cents over CBOT March futures, which closed 3 cents lower at $3.53-1/4 a bushel. Offers for January soft red winter wheat shipments were about 70 cents over CBOT March futures, which settled 4-1/4 cents lower at $4.05 a bushel.
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