FOB Gulf soya offers firm on good demand, corn steady

15 Apr, 2009

US soyabean export premiums at the Gulf of Mexico were steady to firm on Monday, supported by good demand and higher CIF barge values, traders said. Corn basis offers were steady and wheat offers were flat to lower. Recent good demand for US soyabeans supporting values at a time when South American-sourced soyabeans normally dominate.
US soyabeans seen benefiting from uncertainty about Argentine exports. Conflict between farmers and government over soya export taxes remains unresolved and any flare up could lead to more protests and slowed farmer sales. Soya crop in Argentina and parts of Brazil also cut by drought, further benefiting US soyabeans. Chinese demand for soyabeans continues.
US winning some business even after prices hit 2-1/2 month high last week. China imported 3.86 million tonnes of soyabeans in March, up 66.6 percent from a year ago and the second highest monthly tally, according to official Customs figures. Taiwan to issue two tenders for US or South American soyabeans on Tuesday, each for 40,000 to 60,000 tonnes. South Korea tenders for 100,000 tonnes non-genetically modified soyabeans for arrival January-May 2010. Deal between China Sinograin Oils Corp and Japan's Marubeni Corp will give China another channel for imports of soyabeans.
CORN, WHEAT Corn export premiums held steady on Monday, but nearby CIF barge values eased following recent active US farmer selling. Wheat export premiums were weak amid slow demand. Iraq issued a tender on Sunday to buy at least 50,000 tonnes of wheat from any origin, with bids due by next Sunday. US wheat prices are the highest in the world and will have difficulty competing for Iraq business unless prices decline sharply this week, traders said.

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