Soyabean offers lower on dull demand

26 May, 2013

Export premiums for near-term soyabean shipments from the US Gulf Coast were lower on Friday, mirroring declines in the CIF barge market which supplies export elevators and pressured by weak demand and a pickup in farmer selling this week, traders said. New-crop soyabean export premiums held mostly steady amid routine demand.
Spot soyabean futures on the Chicago Board of Trade hit an eight-month high on Thursday but fell sharply on Friday amid widespread talk that China had cancelled some Brazilian soya purchases. Traders could not confirm the rumours. Thursday's futures rally triggered farmer selling of old-crop beans which replenished the thinly supplied market somewhat. But supplies flowing to the Gulf were minimal so exporters were reluctant to lower offers for spot shipments too much for fear of selling an ocean-going vessel and not being able to source enough barges to fill it.
FOB basis offers for June and July were quoted at about 130 cents a bushel over Chicago Board of Trade July futures, a 25-cent premium to spot CIF basis offers. Soft red winter wheat export premiums at the Gulf were steady to firm amid solid demand. Hard red winter wheat premiums were firm on limited available supplies.

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