Soyabean export premiums at the US Gulf Coast climbed on Wednesday as renewed demand from China buoyed basis values and as futures fell sharply, traders said. China bought at least four cargoes of soyabeans on Wednesday to be shipped from the US Gulf in December or January, a trader said.
Some US soyabeans may have also traded to China for October and November shipment. Traders recently said that Chinese importers were believed to have those near term needs already filled. Farmer selling in Brazil has slowed significantly this week amid tumbling futures prices, which lifted prices there and allowed US soyabeans to become more competitive, traders said.
Spot soyabean futures on the Chicago Board of Trade tumbled 3.1 percent on Wednesday. CIF soyabean basis bids at the Gulf jumped 4 to 6 cents a bushel in the October through December positions, traders said. FOB basis offers also higher. Wheat export premiums at the US Gulf Coast held steady on Wednesday on sluggish demand for US supplies with cheaper wheat available from rival exporters, traders said.
Egypt's GASC seeking wheat for December 21-31 shipment with results due Thursday. Russian wheat may again dominate after prices fell this week, traders said. US soft red winter wheat for December shipment FOB Gulf about $20 per tonne more expensive than Russian wheat with an additional $15-$20 freight disadvantage, trade sources said.
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