US soyabean export premiums at the Gulf of Mexico on Friday were firm amid solid demand and export snags in South America, while corn and wheat values were mostly steady, traders said. Soyabean export premiums were up about 5 cents from a week ago despite futures rising to 7-1/2 month highs and finishing the week up about 2 percent.
Considerably restricted soya exports from drought-hit Argentina, normally the No 3 soyabean exporter, sending more business to US. Brazil exporting large amounts of soyabeans, but loadings near capacity and one grain terminal closed for about a month for repairs following a recent storm. No sign yet of slowdown in demand this week from China, the world's top soyabean importer, despite Chinese think tank forecasting a slowdown following recent buying.
China sold 85,000 tonnes soyameal to Japan and Vietnam amid poor domestic feed demand and the recent surge in soyabean imports. Corn export premiums steady to firm on Friday, following firm tone in the CIF barge market. Corn FOB offers up about 3 to 4 cents in the week. US corn competitively priced compared with South American supplies, but corn has to compete with abundant global feed wheat supplies for a spot in feed rations.
Wheat premiums flat amid very slow demand, with US export prospects restricted by highest prices of all global suppliers and abundant world supplies. Signs of a potential bumper hard red winter wheat crop in top producer Kansas boosting values for higher protein wheat. Protein levels decline as crop size increases.
Argentina could fail to export wheat in 2010 due to a major drought that affected production, an Argentine newspaper reported on Friday. Argentina currently projected to export 5.5 million tonnes in 2009/10 marketing year, up from 4.5 million for current marketing year but down from 11.2 million in 2007/08, according to USDA.