Soyabean export premiums at the US Gulf Coast were steady to firmer on Thursday, supported by rising demand and slow farmer selling, which underpinned CIF barge basis values, traders said. The USDA on Thursday reported weekly US soyabean export sales last week at a net 1.472 million tonnes, the second straight week of sales above 1 million tonnes and the largest week of sales since December.
In addition, the USDA confirmed further sales, via its daily reporting system, of 883,400 tonnes of new-crop soyabeans to China and unknown destinations. Traders were monitoring low water conditions on inland waterways used to transport grain and soyabean barges from the Midwest to Gulf Coast export terminals. Several vessels have run aground on the Mississippi River south of St. Louis this week, triggering dredging operations by the Army Corps of Engineers. The heaviest soyabean barge shipping season normally begins in late October.
A section of the Mississippi River near Paducah, Kentucky, was also closed on Thursday due to a tow boat crash and oil spill, with at least 15 barge tows waiting to pass through the 17-mile closed section, according to the Coast Guard. It was unclear when the river would reopen to shipping traffic. Corn export premiums at the Gulf were flat on sluggish export demand and abundant global stocks. The USDA reported lower-than-expected export sales of 451,000 tonnes last week.
US corn was priced competitively on the world market for shipments into October, but demand for near-term shipments was minimal as many importers were anticipating even lower post-harvest prices. Importers in No 2 corn buyer Mexico have largely filled their corn needs through October, a trader said. Wheat export premiums were flat as futures fell and as demand for US-origin grain remained weak amid ample offerings of cheaper wheat from other suppliers, traders said. Egypt’s GASC bought 170,000 tonnes of Russian wheat via a tender for shipment October 11-20. French wheat was competitively offered in the tender following a recent steep drop in prices.