November 9, 2007

US corn exporters report doubling of sales in one week

US corn exporters sold 1.505 million tonnes this week compared to last week's 635,300 due to increased purchases by livestock producers who sought alternatives to high-cost wheat.

Chicago-based Citigroup Global Markets projected sales of 600,000 tonnes to 900,000 tonnes. USDA reported that the sales delivery before August 31, 2007 has risen up to 35 percent compared to last year's performance.

Corn for December delivery rose by 1.4 percent or US$3.895 a bushel to US$3.93, the highest since June 22, 2007. Prices have fallen 13 percent after US farmers increased acreage to a 63-year high.

US corn is selling at less than half of the value of wheat or a US$3.96 discount. For the past three years, the average discount was US$1.20 a bushel.

Wheat in Chicago rocketed to US$5.8375 premium per bushel over corn on October 1, 2007.