Soyabean export premiums at the US Gulf Coast eased on Thursday in tandem with a weaker CIF barge basis as lower Brazilian export premiums threatened to recapture global demand for spring and summer shipments, traders said. Chinese demand noted for May through July cargoes, mostly from South American suppliers. US prices were within several cents per bushel of South American prices for those shipping periods, but Brazil's discount to US has widened this week.
Cash soyabean premiums in Brazil fell for a second straight day on Thursday on increased farmer selling amid higher Chicago Board of Trade futures prices and a weaker Brazilian real currency, traders said. Old-crop US soyabean export sales last week of more than 1 million tonnes were the largest on record for that week of the year as South American new-crop prices were unusually high.
Brazil's Conab cut its forecast for the country's soya production and exports due to drought. Private exporters sold 165,000 tonnes new-crop US soyabeans to China for 2012/13 delivery, USDA said Thursday. Taiwan's BSPA bought 60,000 tonnes Brazilian soyabeans for second-half April shipment.
USDA to release its March supply/demand forecasts on Friday. South American soya crop projections will be in focus following a severe drought. Corn export premiums at the US Gulf Coast were steady to firm on Thursday, supported by tight old-crop supplies and rising demand, traders said.
Recent dip in futures prices generating more demand for US corn from regular importers including Japan, South Korea and Mexico. Japan bought 106,680 tonnes US corn for 2011/12 shipment, USDA said. Buenos Aires Grains Exchange cut its Argentine corn forecast to 20.8 million tonnes.
Traders monitoring potential for more Chinese demand for imported US corn, with purchases seen likely to be triggered by price drops. US and Chinese government views of China's record-high crop seen overstated, private analysts said. US wheat export premiums were mostly steady on Thursday. Egypt's GASC bought 60,000 tonnes US soft red winter wheat via a tender on Thursday.
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