US FOB Gulf soyabean premiums weaker

31 Mar, 2016

Export premiums for soyabeans shipped from the US Gulf Coast were steady to lower on Tuesday on ample supplies and seasonally weak demand from key buyers such as China, traders said. Brazilian soyabean prices are about 7 to 8 cents per bushel below US Gulf prices, a trader said. Corn export premiums were mostly unchanged on Tuesday on light to moderate demand and ample global feed grain stocks.
China plants to end its corn stockpiling scheme later this year and allow markets to set prices, looking to narrow the gap between domestic and imported grain prices that has boosted feed grain imports in recent years. The end of the stockpiling scheme is expected to limit China's imports of corn and other feeds in the near term as state stocks are whittled down. But imports could rebound in the longer term as demand from China for feed continues to rise and farmers turn to planting other crops, traders said.
Wheat export premiums at the US Gulf were flat in quiet trading, capped by dull demand for US supplies and ample global stocks of cheaper grain, traders said. FOB Gulf soyabeans loaded in April were offered at around 46 cents a bushel over CBOT May futures, which closed 7 cents higher at $9.16 a bushel. Corn offers for April shipment were about 48 cents over CBOT May futures which ended 2-1/2 cents higher at $3.73 a bushel.
Spot shipments of soft red winter wheat at the Gulf were offered at about 60 cents over CBOT May futures, which closed 5-3/4 cents higher at $4.76-3/4 a bushel. April hard red winter wheat offers were about 80 cents over May futures, which closed 4-3/4 cents higher at $4.81-3/4 a bushel.

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