US soyabean export premiums at the US Gulf Coast firmed on Thursday as good demand and a rising CIF barge market supported values, traders said. Weekly export sales stronger than anticipated, especially old-crop. Worries about a drought-reduced Argentine crop supported demand for some spring shipments of US soyabeans, at a time when cheaper South American supplies typically dominate.
US soyabean prices were competitive with South American new-crop values for shipments through April, a trader said. Recent sales of old-crop soyabeans to China expected to be shipped from the US Pacific Northwest, not the Gulf. Routine demand from China for US and South American soyabeans ahead of the Lunar New Year holiday next week, when Chinese futures markets will be closed.
Traders monitoring labour unrest in Argentina as grain firms request government help to resolve strike. No major market impact seen yet. US soyabean export sales hit a one-month high last week and data to be released next week will be sharply higher following contract signings by China last week.
US wheat export premiums were about steady on Thursday, underpinned by good export demand for higher-protein supplies, traders said. Japan buys Australian wheat via a tender, but makes no Canadian purchase as protein was too low. A large share of Canada's high-quality crop was damaged by rain, which could ultimately benefit US wheat exports.
Slowdown in demand for US wheat this week, after sales last week topped 1 million tonnes for a second straight week. More demand from some importers in North Africa and the Middle East expected amid food security concerns. Wheat traders expecting a large tender soon from Saudi Arabia as the major buyer has not purchased wheat on the world market in several months. Talk that Saudi may tender as soon as next week to buy 500,000 tonnes, traders said.
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