Soyabean export premiums for shipments from the US Gulf Coast fell on Wednesday along with sinking CIF barge basis values, weighed down by abundant supplies, traders said. CIF soya barge basis values fell by as much as 5 cents a bushel on Wednesday afternoon as incoming supplies from the projected record-large harvest outweighed demand.
Demand from China this week has been lighter than expected. Traders had anticipated a flurry of fresh purchases following a national holiday in China last week that kept a lid on purchases. The US Department of Agriculture on Wednesday confirmed private sales of 60,000 tonnes of US soyabeans and 55,000 tonnes of optional-origin soyabeans to China for 2016-17 delivery.
The USDA raised its US soyabean export forecast for 2016-17 in a monthly report on Wednesday. The agency also raised its Brazilian crop outlook by 1 million tonnes. Hard and soft red winter wheat export premiums were generally steady. HRW bids were supported by solid demand and tight supplies of high protein wheat.
Egypt's GASC issued a tender to buy cargoes of wheat for November 11-20 shipment, with results expected on Thursday. Russian wheat, which has dominated recent tenders, is expected to be among the cheapest grain offered, traders said. The Taiwan Flour Millers' Association is seeking 80,630 tonnes of US milling wheat via a tender closing on Friday. Corn export premiums at the Gulf Coast were weaker amid routine demand and flat to lower CIF basis values. Soyabean cargoes shipped in October and early November were offered at around 80 cents a bushel over Chicago Board of Trade November futures, which closed 8-3/4 cents lower at $9.45-1/2 a bushel.