Export premiums for soyabeans shipped from the US Gulf Coast held steady on Wednesday on light to moderate demand from China for near-term shipments, but values were capped by expectations for an increase in shipments from Argentina, traders said. Argentina said Wednesday it was lifting its currency controls in a bid to normalise and boost the economy. The move could unleash soyabean sales by farmers and, along with a cut to export taxes, increase export volumes in the coming weeks.
Increased soyabean sales by Argentine farmers may primarily flow to domestic crushers, but export shipments of whole beans could also rise and undercut demand for US supplies, traders said. Chinese importers are believed to have the majority of their December soyabean shipment needs filled, a trader said. But they need about 2.5 million more tonnes in January shipments and are not well covered for February needs, he said. China’s purchases for those slots would normally come mostly from the United States, but Argentina may capture a share this year.
Corn and wheat export premiums were quietly unchanged on light demand for US supplies, with a firm dollar dampening buyer interest, traders said. The USDA will release weekly export sales data on Thursday. Trade estimates for last week’s soyabean sales are 900,000 to 1.3 million tonnes for soyabeans, 700,000 to 950,000 for corn and 250,000 to 450,000 for wheat.
Export premiums for December shipments from the Louisiana Gulf were unquoted as exporters there were largely sold out of loading capacity, although spot shipping slots are typically available at a large enough premium, traders said. FOB Gulf soyabeans for January were offered at about 75 cents a bushel over CBOT January futures, which closed 4-3/4 cents lower at $8.62-1/2 a bushel. January corn offers were about 63 cents over CBOT March futures, which closed 7-1/2 cents lower at $3.69-3/4 a bushel.
January shipments of soft red winter wheat at the Gulf were offered at about 75 cents over CBOT March futures, which closed 10-3/4 cents lower at $4.83-1/2 a bushel. December hard red winter wheat offers from the Texas Gulf were about 112 cents over March futures, which closed 11-1/4 cents lower at $4.81 a bushel.