July 6, 2011
US soy, corn premiums gain on improving overseas demand
US cash premiums for soy and corn shipped in July to terminals near New Orleans rose relative to Chicago futures, on climbing demand for tightening US supplies.
The spot-basis bid, or premium, for soy delivered this month rose to 73 cents to 82 cents a bushel above July futures from 72 cents to 78 cents on July 1, USDA data showed. The bid for corn delivered in August jumped as much as 34 cents a bushel. There was no comparison for grain delivered this month as exporters rolled basis from July to September futures.
"There is very little farmer selling of either corn or soy, and export demand is improving," said Troy Lust, a commercial grain broker for INTL FCStone Inc. in West Des Moines, Iowa. "We are seeing a pickup in Chinese corn buying."
Soy futures for July delivery rose 10 cents, or 0.8%, to US$13.3225 a bushel, the sixth gain in seven sessions.
Corn futures for September delivery rose 18.75 cents, or 3.1%, to US$6.255 a bushel on the Chicago Board of Trade. July corn jumped 6.2 percent to US$6.805.
China, the world's largest pork consumer, has sought grain imports to replenish stockpiles and help cool domestic prices that have climbed 22% in the past year, said Grain.gov.cn, a state-controlled researcher. The country may have purchased 2.5-3 million metric tonnes in the past week, and could import as much as 10 million tonnes to rebuild inventories, Lust said.