Soyabean export premiums at the US Gulf Coast were flat to weaker on Friday as an unknown buyer cancelled a large old-crop purchase and as less expensive South American supplies were poised to flood the world market, traders said. USDA on Friday confirmed the cancellation of 250,000 tonnes in 2012/13 US soyabean purchases by an undisclosed buyer, a day after USDA reported more than a net 100,000 tonnes were cancelled last week.
Markets in China will reopen next week after this week's Lunar New Year closure. Traders expect China's international soyabean buying to accelerate next week, with purchases of near term shipments from South America and autumn shipments from the United States. US markets will be closed on Monday for the Presidents Day holiday.
Wheat export premiums at the US Gulf held steady on strong export demand after futures prices this week hit seven-month lows, traders said. Chicago Board of Trade spot soft red winter wheat futures shed 1.9 percent this week while Kansas City Board of Trade hard red winter wheat futures fell 2.8 percent. US price declines along with production shortfalls in exporting nations such as Russia and Argentina have fuelled demand for US wheat from some non-traditional markets. Brazil bought US HRW wheat this week and there has been widespread talk of large purchases by China.