September 24, 2010

US corn and soy premiums rise as rain delays harvest

Cash premiums for corn and soy shipped to export terminals near New Orleans increased relative to Chicago futures as rains across parts of the Midwest this week stalled harvesting and crop sales.

The spot-basis bid, or premium, for corn delivered in September was 34-35 cents a bushel above December futures, compared with 17 cents to 35 cents earlier, USDA data showed. Soy premiums rose to 52-57 cents above November futures from 50-56 cents yesterday.

Corn futures for December delivery fell 5.75 cents, or 1.1%, to close at US$4.9925 a bushel on the CBOT, the biggest drop for a most-active contract since August 24. On Sept. 20, the price reached US$5.2375, the highest level since September 30, 2008.

Soy futures for November delivery rose 5 cents, or 0.5%, to close at US$10.935 a bushel. Earlier, the price reached US$10.9825. On September 20, the oilseed climbed to US$10.995, the highest level since June 2009.

Sales of corn for delivery in the year that began September 1 rose to 16.5 million tonnes as of September 16, up 16% from a year earlier, USDA data show. Soy sales are up 4% to 19.5 million.

Corn sales represent 31% of the 53.34 million tonnes expected by the USDA in the year, up from 26% on average for the date in the prior five years. Soy sales are equal to 48% of the season's forecast.

Today, the cost of moving grain along the upper Illinois River to New Orleans rose to 545% of the 1976 published tariff rates to the highest level in 10 months, the USDA said. The rate was 484% a week ago and 389% a year earlier, USDA data show.