Export premiums for soyabeans shipped from the US Gulf Coast were steady to firmer on Tuesday on rising CIF basis values and higher premiums for Brazilian new-crop supplies, traders said. Crush margins in China have narrowed, slowing purchases by the top importer this week after active buying last week, traders said.
Brazilian export premiums have increased despite a large crop and accelerated harvest due to slower-than-normal farmer sales to elevators, traders said. Corn export premiums were steady with a firm tone amid moderate demand from traditional buyers, including Japan, for spring time shipments, traders said. US corn is competitively priced on the world market into April, but stiff South American competition is expected this year. A Reuters survey pegged Brazil's corn crop at a record 89.6 million tonnes.
The US Department of Agriculture on Tuesday confirmed private sales of 229,000 tonnes of US corn to Japan for 2017/18 delivery and 142,500 tonnes of US soyabeans for 2016/17 delivery. Wheat premiums were unchanged, but values remain inverted due to port congestion and loading delays at the Gulf and Pacific Northwest due to recent adverse weather, traders said.
FOB basis offers for near-term shipments of soyabeans from the Gulf were around 50 cents a bushel above Chicago Board of Trade March futures. Spot corn shipments from the Gulf were offered around 65 cents a bushel over CBOT March futures. Offers for February soft red winter wheat shipments were 85 cents over March futures, while spot hard red winter wheat shipments were 140 cents over March futures.
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