Soyabean export premiums at the US Gulf Coast were mostly steady to weaker on Tuesday as rising supplies of newly harvested soyabeans pressured CIF barge basis values, traders said. Chinese demand for near term soyabean shipments remained solid, with importers inquiring about prices for vessels loaded through early 2016, traders said.
A Chinese trade delegation will travel to Iowa to sign letters of intent to buy US soyabeans on Thursday. The signings are likely to trigger sizable daily sales announcements by USDA, but traders stress that the event is largely political and that terms of many of the deals will be determined at a later date. CIF September soyabean barges traded at 87 cents a bushel over Chicago Board of Trade November futures early on Tuesday and bid 89 over late in the day. However, the spot bid has fallen from a peak of around 109 over early last week. Midwest farmers that have harvested soyabeans have been reporting mostly stronger-than-expected yields and some have been selling excess soyabeans to river elevators.
FOB Gulf soyabean basis offers for shipments this month were unquoted as loading capacity was effectively sold out. October and November offers were around 106 cents over CBOT November futures, which closed 12-1/2 cents lower at $8.61-3/4. Corn and wheat export premiums were quietly steady, capped by sluggish demand amid ample global supplies and stiff competition from lower-cost exporters.
Traditional US corn importers have been booking purchases largely on a hand-to-mouth basis as an accelerating US harvest weighs down prices. Many price-sensitive buyers have been booking cheaper corn from rival suppliers or booking feed wheat purchases. Corn basis offers for the first half of October were 61 cents over December futures, which closed 4 cents lower at $3.80-1/2. Last-half October shipments were offered around 65 cents over futures. SRW wheat basis offers for October were 75 cents over CBOT December futures, which closed 1-1/4 cents lower at $4.95-1/2.