Soyabean export premiums at the US Gulf Coast were steady to firm on Thursday on tight spot supplies and good demand prospects due to elevated prices in rival exporter Brazil, traders said. Chinese trade delegation signed agreements to buy more than 8 million tonnes of US soyabeans on Wednesday and expected to have signed agreements for around 4 million tonnes more on Thursday.
Export demand for US soya otherwise quiet on Thursday. US Gulf soyabeans were competitive on the world market through at least the end of March. FOB basis offers for February were thin. First half March offers were up 2 to 3 cents at 85 cents a bushel over Chicago Board of Trade March futures. Nearby premiums for Brazilian soyabeans were near 85 cents over the Chicago Board of Trade spot futures contract, up more than 20 cents from early last week. Traders said the soya basis was at a record high for this time of year.
Eye on repairs in Santos Port in Brazil after an accident this week involving a grain loader and a ship. Loading will be halted for several weeks, but traders do not expect it to cause a massive exodus of demand to the United States. Stevedores and other workers at Paranagua, Brazil's No 2 grains port, held work stoppages on Thursday to protest delays in securing a new labour contract. Another stoppage planned on Friday.
Soft red winter wheat export premiums at the US Gulf Coast were flat to lower amid adequate supplies as narrowing futures spreads have encouraged holders of wheat to liquidate supplies instead of storing, traders said. Egypt's GASC bought 180,000 tonnes US SRW wheat for April 11-20 shipment. High European wheat prices and a lack of Russian offers helped US wheat secure sales in a second consecutive tender.
Hard red winter wheat premiums were firm, with hopes for sales in two large upcoming tenders underpinning prices. Saudi Arabia seeking 330,000 tons hard wheat for shipment during May and June. Iraq also seeking wheat in a tender that closes on Sunday. Canadian wheat seen competing with US for the sales. Australian wheat, if offered, may also be competitive.
Taiwan Flour Millers' Association bought 85,050 tonnes US-origin wheat via a tender. US wheat exporters thus far avoiding wheat sales to Iran amid financing and war risks. Competing suppliers have sold wheat to Iran at prices some $50 per tonne above current world market prices, traders said. Corn export premiums at the US Gulf Coast were mostly steady on Thursday, underpinned by solid export demand and tight nearby supplies. US corn export sales last week were the highest in four months, boosted by weather concerns in competing suppliers and a weak dollar.