Export premiums for soyabeans shipped from the US Gulf Coast were mostly steady on Friday, underpinned by solid export demand but anchored by weak CIF basis values, traders said. CIF soyabean basis bids slumped for a second day on Friday as ample available supplies outweighed modest demand from exporters.
The US Department of Agriculture on Friday confirmed private sales of 165,000 tonnes of US soyabeans to China for 2016/17 shipment. It was the fourth daily sales announcement in five days. Rising competition from South American suppliers in the soyabean export market has pressured US premiums over the past week. Farmers in Brazil have accelerated soyabean sales to exporters amid a drop in the local currency.
FOB basis offers for corn and wheat were largely unchanged, capped by a strong dollar. The dollar index touched a 13-1/2 year high on Thursday. November export offers at the Louisiana Gulf were not well defined as loading capacity was mostly sold out. December US soyabean shipments were offered at about 60 cents a bushel over Chicago Board of Trade January futures , which closed 4-1/4 cents higher at $9.93-3/4 a bushel.
December corn shipments were offered at 65 cents over CBOT December futures, which closed 3-1/2 cents higher at $3.45-1/2 a bushel. Offers for December soft red winter wheat shipments were about 95 cents over CBOT December futures, which settled 5 cents higher at $4.08 a bushel. Spot hard red winter wheat cargoes were offered at 125 cents over December futures, which closed 5 cents higher at $4.13-3/4 a bushel.