BRASILIA: Premiums for Brazilian soybeans over futures contracts spiked at least 70 cents on Wednesday on the expectation of greater demand from China after the world’s biggest bean buyer said it would tax US imports of soybeans.
Soybean front-month futures on the Chicago Board of Trade fell around 40 cents on the day to about $10/bu at time of press after news of the tax plans broke.
But while futures fell, premiums in Brazil rocketed, with sources saying June and July paper traded at a 190-cent premium over July futures for loading in the summer months, up more than 70 cents on where beans were being offered on Tuesday.
With futures at $10.14 for July, that translates to $443/mt FOB Paranagua.
The Brazilian premium is around 120 cents per bushel higher than the last US Gulf offers reported for June loading, and almost 100 cents per bushel higher than the last PNW trades heard for June loading.
