US FOB Gulf soyabean export premiums held steady on Tuesday supported by continued sales to China, while corn basis offers were unchanged amid routine export demand, traders said. "There continues to be good export business," said a soyabean trader. "China has been in the market every day and they're buying every day a decent amount."
Shipment was from the Gulf in February and March, with most exporters now out reporting they have no more capacity available until March 5. Wheat basis offers were also firm, concerned about dwindling supplies of spring wheat and domestic millers shifting blends to include more high-protein HRW wheat.
Exporters saw Brazil buying little US wheat, although the Brazilian government is discussing cutting the tariff from imported wheat from outside Mercosur, which includes Argentina. "I think this is purely political and designed to put pressure on Argentina to open its wheat export registry," said a trader.
Brazil imports most of its wheat from Argentina. Traders were expecting Argentina's government to reopen wheat export registries soon and allow companies to register an additional 2 million tonnes of wheat. The registrations would be limited to 400,000 tonnes per month for five months, a trader said. The news sent wheat futures tumbling in the US markets of Chicago and Kansas City.
The soft white wheat market in the US Pacific Northwest also showed signs of cooling off. Exporters pulled bids for all shipment periods through July, anticipating that prices have peaked and will fall as the new-crop approaches.
In addition, large buyers of white wheat such as Japan, South Korea and Taiwan have secured most of the supplies they need through May and June shipment, meaning they can wait for the new-crop before making major purchases, traders said.