South American soyabean export supplies were essentially exhausted until the next harvest is available in late February or March, leaving the United States as the only large-volume supplier in the world. Soyabean demand on the world market was slow on Monday amid limited interest from top importer China, where soya processors have been struggling with poor margins. US SRW wheat export prospects remain strong as prices were the lowest among major wheat exporters. However, HRW wheat prices were not competitive in the world market.
Soyabean export premiums at the US Gulf Coast were steady to firm on Monday as concerns that low water on the Mississippi River would prevent barge shipments from reaching export terminals kept basis values elevated, traders said. FOB basis offers corn held steady and soft red winter wheat offers were firm, supported by similar supply concerns.
Receding water levels on the Mississippi between St. Louis and Cairo, Illinois, were expected to trigger draft restrictions that may effectively shut the waterway to navigation in the coming weeks. A navigation halt would cut off barge-delivered supplies sourced from Illinois River and mid- and upper-Mississippi River elevators. The increased costs of shipping grain and soyabeans via rail supported export offers at the Gulf, although some exporters were not posting offers amid the supply uncertainty.
Soyabean barges arriving at the Gulf this week traded on Monday as high as 108 cents per bushel over Chicago Board of Trade January contract, the highest spot basis in three months. FOB offers at the Gulf were unquoted for November and thinly quoted around 110 to 115 over for December and January.