May 25, 2012

Taiwan's soy group purchases 120,000 tonnes Brazilian soy 

The Kaohsiung branch of Taiwan's Breakfast Soybean Procurement Association (BSPA-K) has bought two shipments of soy amounting to 120,000 tonnes from Brazil's Columbia Grain, trading executives said Thursday (May 24).

It bought one cargo at a US$3.07/bushel premium over the November soy futures contract on the CBOT, cost and freight, for July 21-August 4 shipment.

The other cargo was bought at a US$3.133/bushel premium over the CBOT November contract, C&F, for August 15-29 shipment.

The CBOT November soy futures contract is trading around US$12.6750 a bushel. At that level, the flat prices would be around US$578.50 and 580.70/tonne, C&F, for the two cargoes.

The price is lower than a May 8 purchase by BSPA-K for June 26-July 10 shipment at a US$3.333-a-bushel premium over CBOT November futures, C&F, when the contract was trading around US$13.5325/bushel.

Importers are making purchases benchmarked to CBOT November futures even though the shipment will be in July-August because the contract is trading around a US$1.05/bushel discount to the July contract. The November contract represents US new-crop soy, which are being planted.