Soyabean export premiums at the US Gulf Coast held steady on Tuesday in quiet trade as buyers moved to the sidelines ahead of the USDA January supply-demand report due early Wednesday, traders said. USDA to issue reports on Wednesday for final US corn, soyabean production and yields, US and world ending stocks, quarterly US stocks and US winter wheat acreage. Often volatile price moves following reports keeping fresh export demand muted, traders said.
China remains largely focused on South American soyabeans as importers there have needs covered for January shipment and for most of February, when US prices are most competitive. US March soyabeans at a premium to Brazilian supplies, but some demand expected and scattered sales have been reported in recent weeks due to worries from buyers that backups at Brazilian ports would delay shipments, traders said.
Private exporters sold 116,000 tonnes US soyabeans to China for 2010/11 shipment, USDA said Tuesday. US corn export premiums were steady on Tuesday amid firm CIF values and modest demand, mostly from routine buyers.
Worries are reduced crops in Argentina due to dry weather underpinning prices, traders said. Nearby CIF corn continued to rebound from recent lows on slow grain movement and worries about the steady flow of grain amid cold weather and ice on Midwest rivers.
Spot CIF corn barges traded on Tuesday at 40 cents a bushel over CBOT March, up from bids at 34 over late Monday and trades as low as 31 over on Friday, traders said. Private exporters sold 125,000 tonnes US corn to Mexico for 2011/12 shipment, 116,000 tonnes to unknown for 2010/11 shipment, USDA said. US wheat export premiums were level on Tuesday, underpinned by solid demand for higher-protein supplies such as hard red winter wheat, traders said.
Turkey's TMO bought 260,000 tonnes US wheat and 20,000 tonnes each from Ukraine and Kazakhstan in a tender on Tuesday. Traders said most or all of the US wheat sold to Turkey was already in storage in that country. Saudi Arabia to boost wheat reserves to a year supply, from the current six months. Traders expecting a large tender for hard wheat this month.
Traders still awaiting results of Iraq tender for at least 100,000 tonnes of wheat. Private exporters sold 155,600 tonnes US wheat to unknown destinations for 2010/11 shipment, including HRW, HRS and soft white wheat, USDA said on Tuesday.