Soya export premiums firm at US Gulf Coast
November 07, 2012: Export premiums for soyabeans at the US Gulf Coast were unchanged to higher on Monday, underpinned by steady demand and concerns about tight near term supplies of the oilseed, traders said. Soya export demand at the Gulf was quiet, but top importer China may have booked at least one cargo on Monday for shipment from the Pacific Northwest, a trader said. Poor crush margins at Chinese soya processors limiting greater demand for US soya.
Shipments of previously sold cargoes were well ahead of normal levels amid concerns about dwindling supplies before the next South American harvest.
The South American harvest could begin in January, but the earliest soyabeans offered on the world market were for late February shipment, traders said. Exporters may offer earlier shipments once the recently planted crop develops further.
The US Department of Agriculture estimated soyabean export inspections in the season-to-date at 369.6 million bushels, 42 percent above the 260.2 million bushels inspected by the same point a year ago.
The strong demand for physical supplies along with slow farmer sales of newly harvested soyabeans keeping supplies in the export pipeline tight. That supported CIF and FOB basis.
CIF November soyabean barges traded lightly at 90 and 91 cents a bushel over Chicago Board of Trade November futures, the highest for a spot month since late August.
US corn export premiums at the Gulf Coast were quietly steady on sluggish demand. US corn prices were not competitive for November or December shipments, but signs that South American supplies may not be available beyond December suggest demand for US corn was poised to rebound in early 2013.
Wheat export premiums at the US Gulf were mostly steady in quiet trading as US prices were not competitive with rival origins on the world market.
Iraq reissued a tender to buy at least 50,000 tonnes of wheat from several origins including the United States. The tender closes November 18 and offers must be valid November 22.