Soybean premiums flat on slow export demand

CHICAGO: Soybean export premiums at the US Gulf Coast were flat on Wednesday, capped by limited export demand due to aggressive competition from South American suppliers, traders said.

* Exporters in Brazil and Argentina selling more autumn shipment soy cargoes this year following bumper crops, undercutting US prospects during their peak shipping season.

* Buyers in top importer China have their October shipment needs already filled and were buying November cargoes from South America, where prices are about 10 cents a bushel lower than the US Gulf, traders said.

* Some fall US soybeans have traded to China, but volumes have been lower than normal for this time in the season. Private exporters sold 106,000 tonnes US soybeans to China for 2011/12 delivery, USDA said.

* USDA weekly export sales report on Thursday expected to show soybean sales last week at 400,000 to 600,000 tonnes, compared with 444,900 tonnes the prior week and 668,600 tonnes a year ago.

WHEAT, CORN

* Wheat export premiums at the US Gulf were steady to lower, with slow demand capping soft red winter wheat values. Weak CIF basis values and heavier supplies in the export pipeline weighed down hard red winter wheat premiums.

* No US wheat offered in latest tender by Egypt's GASC for a second straight week as US prices were not competitive. GASC bought a total of 420,000 tonnes Russian wheat for Nov 21-30 and Dec 1-10 shipment.

* US Gulf corn export premiums were steady on limited demand amid competition from rival corn exporters and from ample global supplies of feed wheat, traders said.

* Most corn importers buying for hand-to-mouth needs due to historically high prices above $7 a bushel.

* Corn export sales last week estimated at 400,000 to 700,000 tonnes ahead of USDA report on Thursday, compared with 870,600 tonnes the prior week and 587,900 tonnes a year ago.

* World's No. 2 corn exporter Argentina to authorize export of 7 to 8 million tonnes of 2011/12 corn in addition to 12.6 million previously authorized.

Copyright Reuters, 2011