US FOB Gulf soyabean offers firmer

Export premiums for soyabeans shipped from the US Gulf Coast were steady to firm on Thursday on moderate demand, with nearby values rising in tandem with higher barge basis values, traders said. US soyabean export sales hit a six-week high last week, according to US Department of Agriculture data. The agency also confirmed 132,000 tonnes in old-crop soyabean sales to China, the seventh daily soyabean sales announcement in nine days.
China has also increasingly been booking South American new-crop soyabeans, which are competitively priced for February shipment and beyond. Strong domestic soyameal prices and profitable Chinese crush margins are fueling demand, traders said. December CIF soyabean basis bids climbed to a premium to bids for January loadings as traders covered short positions in the market. Below-zero (Fahrenheit) temperatures in the Midwest this week have raised concerns about slowed barge movement due to ice on rivers.
Corn export premiums were flat amid routine demand from traditional US customers, including Mexico and Japan. Wheat export premiums held steady on moderate demand. Algeria's state grains agency OAIC bought 490,000 tonnes of optional-origin wheat for shipment in February in a tender that closed on Wednesday. US wheat may be included.
The United States launched a challenge to China's use of tariff-rate quotas for rice, wheat and corn at the World Trade Organization, charging that Beijing's administration of the program breached its WTO commitments and hurt US farm exports. December US soyabean shipments were offered at about 53 cents a bushel over CBOT January futures, which closed 5-1/4 cents higher at $10.29 a bushel. December and January corn shipments were offered at about 54 cents over CBOT March futures, which closed 5-1/2 cents lower at $3.56-1/2 a bushel.
Offers for December soft red winter wheat shipments were about 70 cents over CBOT March futures, which settled 8-3/4 cents lower at $4.09-1/4 a bushel. Spot hard red winter wheat cargoes were offered at 110 cents over March futures, which closed 7-1/4 cents lower at $4.2-3/4 a bushel.