Soyabean export premiums for shipments from the US Gulf Coast surged on Thursday on strong demand for old-crop supplies as rising prices and limited offers in South America shifted demand to the United States, traders said. Old-crop soyabean premiums gained 5 to 15 cents per bushel on the unexpectedly strong demand, even as future prices surged. New-crop premiums jumped by 10 to 20 cents, slightly outpacing old-crop basis gains as the spread nearby futures contracts and deferred months widened, traders said.
At least 10 cargoes of old-crop soyabeans have been booked out of the Gulf in the past week for shipment to China, including new purchases and origin switches of shipments that had initially been slated for loading in Brazil, traders said. Offers for Brazil and Argentina soyabean shipments in August and September are up sharply from last week. The South American export surplus has thinned because of record Brazilian export shipments earlier in the season and weather-related crop losses in Argentina.
Rainy weather in Argentina may further damage the country's already reduced soyabean crop, the Buenos Aires Grain Exchange said Thursday. Corn export premiums were mostly steady to firm on moderate demand from regular US customers and adequate available supplies, traders said. US corn is competitively priced on the world market as Brazilian supplies are not available for near term shipment and Argentine prices have climbed amid a slow harvest pace. But cheap feed wheat is limiting some demand for corn in the global marketplace.
US Gulf wheat export premiums were steady to higher, with hard red winter wheat values underpinned by solid demand. Net old-crop US corn and soyabean export sales last week are expected to be down from the prior week, analysts said ahead of Friday's weekly USDA export sales report. FOB soyabean basis offers for late June shipments were 55 cents a bushel over CBOT July futures, which closed 44-1/2 cents higher at $11.44-1/4 a bushel.
June corn shipments were offered at about 52 cents over CBOT July futures, which closed 1-1/2 cents higher at $4.15-1/4 a bushel. Spot soft red winter wheat was offered at about 60 cents over CBOT July futures, which closed 11-3/4 cents higher at $4.85-1/2 a bushel. Spot hard red winter wheat offers were about 90 cents over July futures, which closed 8-1/2 cents higher at $4.64-1/2 a bushel.