Soyabean export premiums at the US Gulf Coast held steady on Friday amid tight old-crop stocks and light demand for near-term shipments, traders said. Top soyabean importer China is booking mostly South American shipments, which are offered at a large discount to US prices through October.
Chinese importers cancelled several cargoes of US soyabeans last week and US shipments to all destinations fell to the lowest point since October, USDA said. Few US soyabeans were offered for shipment before late March as loading capacity at Gulf elevators was sold out. Basis offers that were quoted were at a steep premium to deferred prices. Gulf exporters struggled to source enough barge shipments of soyabeans to meet nearby loading commitments as icy conditions have slowed navigation on northern sections of the river system. Basis bids for barges arriving at the Gulf by next Friday were about $1.30 per bushel above Chicago Board of Trade March futures.
Export elevators at Pacific Northwest elevators also struggled to source soyabeans as winter weather delayed rail shipments from the Midwest. Port delays in Brazil have been lighter than last year so far this season as soyabean shipments have been prioritised over corn. Lineups at Paranagua were currently around 75 days long, versus more than 90 days a year ago, a trader said. FOB soyabean basis offers at Paranagua port fell 2 cents to 9 cents per bushel on Friday for April through July shipments. US corn export premiums were unchanged, with nearby values supported by a lack of available export capacity through at least late March, traders said.
ADM said Friday it would not accept corn with Syngenta's Duracade trait until it is accepted by all major importers. The move comes after China rejected numerous cargoes of US corn this season for an unapproved GMO. Wheat export premiums were flat on slow demand. Few major importers were in need of shipments before May. Lower prices for new-crop northern hemisphere supplies, which will be available from June, discouraged heavy May wheat bookings.
