Brazil soybean premiums slump after huge rally

Brazil premiums for soybeans for export eased in trade on Thursday morning after increasing 60% on Wednesday on the back of expectations of firmer Chinese demand.

May paper Paranagua was heard first raded at 175 cents over May futures, down 15 cents on where it was offered at close on Thursday as Perdue sold 5,000 mt to Amaggi, according to four trade sources.

However, later in the afternoon it traded again at a 150 cent premium and was offered on at that level indicating lower values.

"The market is coming off a lot," said one broker.

The premiums remain 50-60 cents higher above those in the US Gulf, according to other sources.