US FOB Gulf soyabean premiums ease on slow export demand

10 Nov, 2015

Export premiums for soyabeans shipped from the US Gulf Coast eased on Friday amid a slowdown in export demand, while corn and wheat export premiums were mostly flat, traders said. The pace of soyabean buying by top importer China has slowed as the stockpile at warehouses near the country's ports was estimated at around 6.5 million tonnes following record imports in recent months, including around 10 million tonnes in October, a trader said.
Some traders anticipate a near term slowdown in soyabean export sales to pick up by December once more of China's in-port supplies are absorbed by processors. Some Latin American importers have booked light purchases of US corn this week, including Colombia and Peru, traders said. But some key buyers in Asia have bypassed US supplies for cheaper grain from rival exporters.
Near term US corn shipments are priced about $8 to $10 per tonne FOB higher than South American and the Black Sea region shipments, traders said. Some Brazilian corn export loadings have been slowed by rainy weather and port congestion, but the country is expected to continue shipping grain into early 2016, which could keep a lid on demand for US supplies, traders said. A strengthening dollar continued to restrict demand for US wheat. The dollar climbed to a seven-month high against a basket of currencies on Friday following stronger-than-expected employment data.
FOB Gulf soyabean basis offers for November were 3 cents lower at 81 cents a bushel over Chicago Board of Trade January futures, which closed 3-1/4 cents higher at $8.67-1/4 per bushel. FOB Gulf corn basis offers for November loadings held at 76 cents a bushel over Chicago Board of Trade December futures, which closed 1-1/2 cents lower at $3.73. November soft red winter wheat offers held steady at 85 cents over December futures, which closed 3 cents lower at $5.23-1/4. November hard red winter wheat offers were unchanged at around 110 cents over December futures, which closed 4-1/4 cents higher at $4.90-1/4.

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