US soyabean export premiums at the US Gulf Coast were flat to weaker on Wednesday amid minimal demand from China for nearby shipments and easing CIF barge basis values, traders said. Chinese demand for old-crop US soyabean shipments was muted as crush margins at Chinese processors were negative through at least March, traders said.
Demand for new-crop US supplies remains solid, with talk of three cargoes sold to Chinese buyers on Wednesday for October and November shipment. China has been booking Brazilian shipments this week for March and beyond. Some buyers avoiding booking Argentine soyabeans due to worries that a dry weather pattern there will ultimately reduce the crop.
Higher soyabean futures and ample supplies of soyabeans in the US export pipeline weighing on nearby CIF soyabean basis values and pressuring nearby FOB offers, traders said. Spot CIF barges traded at 57 cents a bushel over CBOT March futures on Wednesday and were bid 55 over late in the day, down from 58 over on Tuesday. FOB offers for January soyabeans were about 72 over, down 2 cents, traders said. Taiwan's BSPA bought 57,000 tonnes of soyabeans for early February shipment from the US Gulf of Brazil, traders said on Wednesday.
Trade still awaiting results of South Korean tender for 25,000 tonnes non-GMO soyabeans. US corn export were steady to lower on Wednesday amid sluggish demand and weak CIF barge basis values, traders said. Hard red winter wheat export premiums were level, underpinned by steady export demand, while soft red winter wheat premiums were weak amid dull demand, traders said.
Market awaiting results of Iraq tender for at least 100,000 tonnes wheat. Some traders questioning whether Iraq will make a purchase following price rally this week. Other outstanding international wheat tenders include Turkey Algeria Libya Tunisia and a Moroccan tender for import permits.
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