FOB Gulf soya basis soft on slow demand, corn flat

13 Jun, 2009

US soyabean export premiums at the Gulf of Mexico were steady to weaker on Thursday amid slow demand and in response to recent declines in CIF barge market values, traders said. Nearby soyabean barges fell 3 to 4 cents per bushel on Thursday amid rallying soyabean futures, with CBOT spot month at nine-month high, up more than 7 percent from last week's low.
US soyabean price at the Gulf, were at least $11 per tonne FOB higher than Brazilian soyabeans and $15 higher than Argentine soyabeans. Demand from China, the world's top soyabean importer, has slowed from the recent active pace amid China's ample stocks and poor domestic crush margins. China's soyabean imports slipped to 3.52 million tonnes in May, down 5.1 percent from April but still 1.2 percent ahead of May 2008, official Customs figures showed.
China considering direct support to soya crushers as government looks for ways to entice farmers to plant more and buyers to rely less on imports. Corn export premiums at the Gulf were steady on Thursday amid solid demand and tight supplies in the export pipeline due to sluggish farmer selling. US Gulf corn about $5 per tonne FOB cheaper than Argentine corn, $10 cheaper than Brazilian corn, traders said. Deferred shipment corn slightly less competitive.
South Korean feedmaker issues tender for up to 275,000 tonnes corn, 55,000 tonnes wheat for arrival between October and December. FOB basis offers for wheat were unchanged on Thursday, capped by dull demand and ample world supplies. Eye on Iraq tender for optional-origin wheat, which closes on Sunday.
Iraq bought 250,000 tonnes of Canadian and Australian wheat in its last tender and traders said both origins are likely winners of the newest tender. US wheat prices remain the highest in the world. US wheat also have a freight disadvantage into key Middle East and African markets. Cargo inspector in Egypt said falsified quality certificate used on Russian wheat shipment, importer says its was definitely valid.

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