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Corn, Soybean Premiums Widen on Gain in Demand for U.S. Exports

Sept. 30 (Bloomberg) -- Cash premiums for corn and soybeans shipped to export terminals near New Orleans widened relative to Chicago futures on higher demand for newly harvested crops in the Midwest.

The spot-basis bid, or premium, for corn delivered in September was 40 cents to 44 cents a bushel above December futures yesterday, compared with 37 cents to 40 cents yesterday, government data show. The average spot premium was the highest in five weeks. Soybean premiums widened to 54 cents to 60 cents above November futures, up from 54 cents to 58 cents.

“We have an aggressive export program the next three months, and some exporters may be trying to get some extra supplies,” said Diana Klemme, the director of the grain division at Grain Service Corp., a consulting and brokerage company in Atlanta. “The harvest is not at the moment overwhelming demand.”

Corn futures for December delivery fell 9.25 cents, or 1.8 percent, to close at $4.9575 a bushel on the Chicago Board of Trade. Earlier, the price touched $4.7825, the lowest level since Sept. 13. The grain surged 33 percent in the third quarter.

Soybean futures for November delivery rose 7.75 cents, or 0.7 percent, to settle at $11.0675 a bushel. The price jumped 23 percent in the third quarter.

Shipping volumes will increase in October, the USDA said today in a report. Forty-seven vessels were loaded with grain and soybeans at terminals near New Orleans in the week ended Sept. 23, up 31 percent from the same period a week earlier. About 63 ships are expected to be loaded in the next 10 days, up 7 percent from last year.

U.S. railroads shipped 23,177 carloads of grain to exporters and processors in the week ended Sept. 25, up 19 percent from a year earlier, the Association of American Railroads said.

To contact the reporter on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net.

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