Soyabean export premiums at the US Gulf Coast were firm on Tuesday, rising in tandem with higher values in the CIF barge market despite seasonally slow export demand, traders said. Nearby CIF basis bids climbed 5 to 7 cents a bushel on Tuesday as weeks of slow soyabean movement left the pipeline very thin. Domestic processors have been aggressive bidders recently and exporters were forced to be more aggressive this week to fill needs for June and July loadings, traders said.
Demand for US Gulf beans remains slow. Importers seeking near term supplies currently buying cheaper soyabeans from South America, traders said. Poor crush margins keeping a lid on new-crop US soyabean demand from top buyer China. Corn export premiums at the US Gulf were steady to higher on Tuesday, underpinned by a firm CIF basis, traders said. But export demand remained slow as Gulf prices were not competitive, they said.
Traders unable to confirm persistent rumours of Chinese demand for imported US corn, adding that basis values did not appear to indicate that any large volume was purchased. Argentina aiming to unlock corn exports to China by signing a health protocol in the next few months, but there may be little impact on Chinese demand for US supplies, Chinese traders said.
Shipping restrictions on the lower Mississippi River, the main supply channel for Midwest grain to Gulf export terminals. Barges able to transit area near Natchez, Mississippi, but that section was expected to be closed completely for several days starting on Thursday, according to the latest river forecast.
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