Export premiums for soyabeans shipped from the US Gulf Coast fell on Wednesday in tandem with sinking CIF barge basis values, pressured by weak demand and plentiful supplies in the export pipeline, traders said. CIF basis bids for barges loaded with soyabeans in March and April fell to 35 cents a bushel over Chicago Board of Trade May futures, down 4 to 5 cents from the previous day due to ample supplies available to exporters. The basis also matched a 4-1/2 year low for a spot bid posted earlier this month.
US Gulf soyabean prices are at a premium to South American new-crop supplies so key buyers such as China are booking purchases there instead, traders said. Near term Brazilian shipments are at least 7 to 8 cents per bushel below US Gulf prices, they said.
US Gulf corn export premiums were mostly steady, underpinned by moderate demand mostly from regular US grain buyers, traders said. But expectations for large corn harvests in Brazil and Argentina are capping demand for deferred US shipments. High domestic corn prices prompted Brazil to sell public stocks and propose dropping import taxes. Meanwhile, livestock producers have booked 500,000 tonnes in corn imports from Argentina and Paraguay.
Wheat export premiums at the US Gulf were flat in quiet trading, capped by dull demand for US supplies and ample global stocks of cheaper grain, traders said. The USDA is scheduled to release weekly export sales data on Thursday along with its quarterly US stocks estimates and planting intentions reports.
FOB Gulf soyabeans loaded in April were offered at around 43 cents a bushel over CBOT May futures, which closed 7 cents lower at $9.09 a bushel. Corn offers for April shipment were about 48 cents over CBOT May futures, which ended 6 cents lower at $3.67 a bushel. Spot shipments of soft red winter wheat at the Gulf were offered at about 60 cents over CBOT May futures, which closed 12-3/4 cents lower at $4.64 a bushel. April hard red winter wheat offers were about 80 cents over May futures, which closed 16 cents lower at $4.65-3/4 a bushel.
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