Soyabean export premiums hold firm

October 05, 2013


Soyabean export premiums at the US Gulf Coast were steady to firm on Thursday, with nearby values underpinned by limited near-term export loading capacity and deferred offers supported by strong demand forecasts, traders said. South American soyabean offers for shipments through the end of the year were very limited, leaving the United States as the sole large volume supplier in the near term.

Brazilian soyabean offers for February and March shipments were not well defined as supplies of newly harvested beans may be limited and as a large share of export loading capacity at ports may be occupied by corn shipments. New demand from top importer China was lacking as markets there were closed this week for a national holiday.

October and November elevation capacity at grain export terminals at the Louisiana Gulf was effectively sold out following heavy forward sales over the summer. The lack of available capacity kept a firm floor under nearby soyabean, corn and wheat FOB basis values.

Soft red winter wheat export premiums were mostly steady to weak amid quiet demand. Hard red winter wheat premiums held steady on solid export demand, largely from Brazilian millers seeking November shipments as supplies from the country’s top supplier, Argentina, were unavailable. Corn export premiums were unchanged, capped by light demand and rising US supplies. Demand for US corn remains seasonally lighter than normal as other exporters are offering near-term shipments of corn at lower prices. However, US prices for early 2014 shipments were more competitive with rival suppliers. Courtesy: Reuters

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