Soyabean export premiums at the US Gulf Coast were steady to firm on Wednesday on strong export demand amid unusually high prices for competing Brazilian new-crop supplies, traders said. Lighter-than-anticipated farmer sales in Brazil propping up premiums there and seen keeping US soyabeans competitive on the world market through at least March.
Harvest is ramping up in Brazil, but basis values are at record highs for the time of year, several traders said. Half of the soya and corn export capacity at Santos, Brazil's biggest port, is shut down after a ship collided with a grain loader. Market impact limited in the short-term, but prolonged delays could divert demand to other suppliers and raise food prices. A Chinese trade delegation on Wednesday signed agreements to buy 8.62 million tonnes of US soyabeans. Further signings on Thursday will bring that total to more than 12 million tonnes.
Private exporters sold 116,000 tonnes US soyabeans to China for 2011/12 delivery, USDA said early on Wednesday. Another cargo may have traded since then for near-term shipment from the Pacific Northwest, traders said. Corn export premiums at the US Gulf Coast were steady to firm on Wednesday, supported by good demand mostly from regular US corn customers.