US FOB Gulf soyabean premiums mostly steady

US soyabean export premiums at the Gulf Coast were mostly steady on Friday in quiet trading ahead of the weekend and after Chicago Board of Trade futures rallied 2 percent, traders said. Soya demand from China was muted on Friday after the top importer booked several harvest-time shipments from the United States earlier this week.

The USDA on Friday confirmed private sales of 132,000 tonnes of US soyabeans to China for 2015/16 delivery. A sale of 132,000 tonnes was also confirmed on Thursday. Limited near-term export loading capacity in Brazil opened a window of opportunity for US shipments of early-harvested crops.

Importers in China’s northern Shandong province suspended soyabean sales and distribution last week after GMO supplies were found to be illegally entering food production. But crushers in the area are expected to continue importing soya. FOB corn basis offers were flat on weak export demand, challenged by cheap South American supplies and a generally strong dollar. Brazilian corn is expected to challenge US shipments for global demand until late in 2015, with prices currently about 40 cents per bushel lower, according to trade sources.

Wheat export premiums were steady to weak on sluggish export demand and ample world supplies. South Korea’s CJ passed on a tender to buy 27,000 tonnes of US wheat as prices were deemed too high. The USDA will release its monthly supply and demand report on Wednesday. Analysts expect a cut in US corn and soyabean production and ending stocks. August soyabean basis offers were unchanged at 85 cents above the CBOT November contract, which closed 20 cents higher at $9.63-1/4 a bushel.

Corn basis offers for August shipments held at 60 cents over CBOT September futures, which closed 3 cents higher at $3.72-3/4. FOB August soft red winter wheat was offered 55 cents over CBOT September futures, which closed 3-1/2 cents higher at $5.10-1/2. FOB hard red winter wheat shipped in August was offered 110 cents over the September HRW wheat contract, which closed 3-1/2 cents higher at $4.93.

Copyright Reuters, 2015


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