Soyabean export premiums at the US Gulf Coast were steady to lower on Thursday amid sluggish export demand and weak basis values in the CIF barge market, traders said. Renewed Chinese interest in US soyabeans expected in coming months as South American supplies thin. Chinese importers inquired about prices on Thursday for December shipments and beyond, but no fresh sales could be confirmed.
US Gulf soyabean prices currently competitive with South American on a FOB basis, with additional freight advantage over Brazil and Argentina on shipments to China. Export sales of US soyabeans were below expectations last week, hitting a four-month low on unusually low sales to top importer China. Chinese purchases of US soya over past four weeks totalled 1.2 million tonnes, versus 4.3 million in the same period last year.
Nearby CIF soyabean basis bids at a wide discount to deferred basis after influx of November loaded barges refilled the export pipeline with soyabeans despite little fresh export demand, traders said. US corn export premiums were unchanged, underpinned by slow farmer selling which kept a firm floor under CIF basis values, traders said.
Argentina hoping to finalise sanitary protocol with China over corn shipments by the start of its next harvest, Argentine officials said. USDA attache sees larger 2011/12 Brazil corn crop at 64 million tonnes, above latest official USDA outlook for 61 million tonnes. US wheat export premiums were mostly steady after spiking earlier in the week on tight supplies in export market channels, traders said. Stiff competition from low-cost suppliers in the Black Sea region dampening export demand for US wheat. Majority of demand remains routine sales to regular buyers in Latin America, Asia and Africa.