Soya export premiums firm at US Gulf Coast

Soyabean export premiums at the US Gulf Coast were firm on Friday on good demand from top importer China for both old- and new-crop US supplies amid logistical woes and a lack of adequate farmer sales in South America, traders said. New-crop CIF basis values for US Gulf soyabeans surged to historical highs amid early buying by China.
Soyabean basis in Brazil, where the harvest is well underway, remains atypically high as lighter-than-anticipated producer sales and strong domestic demand limited supplies available to exporters. Farmers discouraged from selling due to a weaker Brazilian real currency and disappointing crop yields.
Analytical firm Informa Economics lowered its 2011/12 Brazil soya crop outlook to 68 million tonnes, down 2 million tonnes from its previous estimate. Seasonal port congestion in Brazil adding incentive for China to source near-term supplies from the United States, where prices are competitive with South American new-crop prices well into the summer months.
A port worker strike in Argentina delayed 57 grain ships at the country's ports on Friday. Workers at Rosario, the main grains hub, ended their strike late on Friday. Chinese soyabean import demand was strong amid good crush margins. Traders said China may have booked 20 cargoes of soyabeans this week, including about 10 cargoes of old- and new-crop US soyabeans. At least one US cargo was sold on Friday.
Private exporters sold 120,000 tonnes US soyabeans for 2011/12 delivery, 165,000 tonnes for 2012/13, both to unknown, USDA said. The sale appeared to be to China, which bought up to 10 US cargoes last week, traders said. Corn export premiums at the US Gulf were unchanged on Friday amid steady export demand from regular US customers.
Chinese importers have inquired about US prices this week but booked no new purchases. Traders expect China to buy more US corn by early- or mid-spring, especially if US futures prices dip by 4 or 5 percent from current levels. The founder of China's largest private agricultural business called for a liberalisation of corn import policy. Hard red winter wheat export premiums were steady with a firm tone on Friday, underpinned by strong demand for wheat from key importing nations in the Middle East and North Africa, including Iran.