Soyabean export premiums at the US Gulf Coast were firm on Friday as improved demand for US supplies from top importer China accelerated purchases this week, traders said. Positive spot crush margins at Chinese soyabean plants for the first time in about two months boosted buying interest, with at least eight cargoes purchased since midweek, traders said.
Several were for February shipment, they added. China has already booked about 1.5 million tonnes of South American soyabeans for February shipment, but heavy rains across parts of Brazil raised concern that deliveries could be delayed, a trader said. That appears to have triggered demand for February US soya, he said. Looming harvest of a near-record South American soya crop limiting demand for US shipments later in the spring. Rains across Brazil and Argentina this week seen boosting crops in many drought-hit areas. Corn export premiums at the US Gulf coast mostly steady on Friday after rising earlier in the week amid improved demand as futures prices declined. South Korea was a particularly active buyer of feed grains this week.
Smaller Argentine corn crop seen benefiting US corn demand in late spring or summer, traders said. Argentina's Rosario Grains Exchange on Friday cut its corn crop to 21.4 million tonnes, down nearly 18 percent from last month's estimate of 26 million tonnes. USDA on Thursday cut its forecast to 26 million tonnes, down 3 million tonnes.
Wheat export premiums were mostly steady in quiet trade, with US wheat competitively priced for shipments to regional buyers but slightly overpriced for shipments to larger importers in the Middle East and North Africa, traders said.
Egypt's GASC on Friday bought two cargoes of French wheat and one cargo of Russian wheat for late March shipment. US soft red winter wheat offered in the GASC tender was only about $3 to $7 per tonne more expensive, delivered to Egypt, than the winning bids. Several months ago it was more than $40 per tonne higher than winning bids.