January 24, 2013
Soyabean export premiums at the US Gulf Coast were steady to weak in nearby shipping positions on Tuesday amid seasonally slowing demand and higher futures prices, but firmer in new-crop months, traders said. CIF soyabean barges loaded in October and November actively traded at higher prices as the bulk of recent demand, particularly from top importer China, was for new-crop supplies.
CIF October barges traded up to 82 cents a bushel over Chicago Board of Trade November futures, up 6 cents from early bids. November barges traded 85 over, up 5 cents. USDA on Tuesday confirmed private sales of 120,000 tonnes optional-origin soyabeans to China for 2013/14 delivery. US old-crop demand was minimal as South American supplies were expected to flood the global market from late February.
Port congestion in Brazil may shift some demand for February and March shipments to the United States, but traders said prices in the Pacific Northwest were currently more competitive than the Gulf. Oilseeds analyst Oil World said it has cut its forecasts for the 2013 soyabean harvest in Argentina by 1 million tonnes because of unfavourably dry weather but has raised its forecast of Brazil’s crop by 0.5 million tonnes. Corn export premiums at the Gulf were flat, capped by slow export demand due to uncompetitive prices. Wheat export premiums at the Gulf were mostly unchanged, with soft red winter wheat underpinned by good export prospects as US soft wheat prices were the lowest among major exporters.