US soyabean export premiums at the Gulf of Mexico were flat on Friday amid a seasonal slowdown in demand as importers increasingly shop for soyabeans in South America, where prices are sinking, traders said. Soyabean export premiums steady in the week, underpinned by firm CIF barge values, limited farmer selling.
US soyabean exports heavily concentrated in the first half of the September-August marketing year, with sales to date at about 93 percent of the government's full-year forecast. Traders expect vast majority of US soyabean cargoes sold to top importer China to be shipped despite recent plunge in South American prices. China has about 5 million tonnes purchased but not yet shipped.
China has been buying more cargoes from South America this week, but trade expected to slow due with start of week-long Chinese New Year holiday starting February 14. Dry weather speeds Brazil soya harvest, but rains seen returning next week. Argentine corn, soya crops thriving amid good weather. US corn export premiums at the Gulf were mostly steady on Friday amid moderate demand following more than 16 percent drop in futures prices over the past month. FOB values underpinned by firm CIF corn basis, which is up 2 to 4 cents per bushel this week in nearby positions amid lack of farmer selling, traders said.
Big crop in Argentina, the world's No 2 corn exporter behind the United States, attracting world demand for spring shipments and undercutting some US export prospects, traders said. Soft red winter wheat export premiums flat to weaker on slow demand, hard red premiums firm amid moderate demand and tight supplies of higher protein wheat, traders said.
Recent futures decline has increased demand for HRW as previously reluctant hand-to-mouth buyers extended coverage. Nigeria has increased purchases of 12 percent protein HRW and in the market for more, according to traders. Morocco tendered this week for 103,000 tonnes of soft wheat, meaning non-durum. Traders said it would likely be lower protein HRW which is cheaper than SRW.
Traders say benefit in US exports from recent futures drop largely offset by firming dollar, which decreases the buying power of those holding other currencies. Dollar hits seven-month high against basket of currencies amid worries about euro zone fiscal stability.