Soyabean export premiums firm

Soyabean export premiums at the US Gulf Coast were firm on Friday, rising in tandem with a higher CIF barge market despite sluggish export demand for US supplies, traders said. CIF soyabean basis bids firmed in the second half of this week on tight supplies in the pipeline and scattered demand from domestic processors, rising about 10 to 15 cents a bushel since midweek, traders said.
The cash basis in South America was up about 20 cents from midweek lows, they said. US old-crop soyabean prices at the Gulf were at a $20 to $25 premium to South American new-crop values. China has purchased about 20 cargoes of Brazilian soyabeans since early last week for shipment May through August, trade sources said.
Extension of China's cap on vegoil prices could slow imports, industry sources said. USDA world supply/demand report on Friday showed a small cut in 2010/11 US soyabean exports, small increase in Brazil exports. It also showed a 2 million tonne increase in Brazilian soya production from the prior estimate, which was expected after recent estimates by other forecasters.
US corn export premiums were flat on Friday amid sluggish demand following a 16 percent surge in prices since late last week, traders said. USDA supply/demand report increased Chinese corn imports by 500,000 tonnes to 1.5 million for 2010/11, reflecting recent old-crop sales. Brazil corn crop outlook raised by 2 million tonnes, also as expected.
Soft red winter wheat export premiums were flat to lower amid sinking CIF values, while hard red winter wheat premiums were steady, traders said. Little tender business outstanding, although traders said they were expecting Iraq to tender as soon as next week. Traders said they were also anticipating another Saudi Arabian tender this month.