Soyabean export premiums steady at US Gulf Coast
October 11, 2012: Soyabean export premiums at the US Gulf Coast were about steady on Tuesday on routine demand and light-to-moderate supplies in the export pipeline, traders said. Soyabean export inspections last week rose to 45.6 million bushels, the most in nearly a year, according to USDA data. Active loading of exports and slow farmer selling kept basis values well supported, traders said.
Chinese importers made some price inquiries for late-2012 to early-2013 shipments from the United States, but traders could not confirm than any deals were completed. China bought several cargoes late last week for December and January shipment from the Pacific Northwest.
South American suppliers Brazil and Argentina were essentially sold out of soyabeans until their next harvest in early 2013, leaving the United States as the only large-volume seller for nearby shipments. US export competitiveness falls off considerably from February as Brazilian new-crop supplies for shipment from that time are at least $30 per tonne below US prices.
China to auction 400,000 tonnes of soyabeans from state reserves on Thursday. Nearly all of the soyabeans offered in recent auctions have been snapped up by crushers as prices were below import costs. Argentine port workers launched an indefinite strike on Tuesday that will target the Rosario grains hub.
Corn export premiums were unchanged in quiet trade, with lower-cost South American and Black Sea corn undercutting demand for US corn. China to issue low-tariff import quotas for up to 7.2 million tonnes of corn for 2013. Government firms will have 60 percent of the quotas. The US Grains Council said last week that China would likely only import corn this season to rebuild reserves if prices are attractive.