September 28, 2010

US soy export premiums increase on higher shipments

Cash premiums for soy shipped to export terminals near New Orleans increased relative to Chicago futures as US export shipments jumped last week to the highest level in six months.

The spot-basis bid, or premium, for soy delivered in September was 52-58 cents a bushel above November futures earlier, compared with 52 cents to 57 cents on September 24, government data show. The average spot-export bid was US$11.835 a bushel, the highest level in almost 13 months. Corn premiums were unchanged at 35-38 cents above December futures.

Soy futures for November delivery rose 2.5 cents, or 0.2%, to close earlier at US$11.285 a bushel on the CBOT, after touching US$11.44, the highest price since June 2009. The oilseed gained 5.3% last week, the most in 10 months.

Meanwhile, corn futures for December delivery fell 9 cents, or 1.7%, to settle yesterday at US$5.1275 a bushel on the CBOT, the biggest decline since August 24. Earlier, the price touched US$5.2875, the highest price for a most-active contract since September 2008.

Government inspectors examined more than twice the amount of soy for export in the week ended September 23 than a year earlier, the USDA said. Of the shipments, 45% were headed to China, the world's largest consumer.

Corn inspected for export fell to 34.003 million bushels last week from 35.669 million a year earlier, USDA data show. Shipments from September 1 to September 23 are down 11% to 129.24 million bushels from the same period a year earlier, according to the department.