Cash premiums for soybeans shipped to export terminals near New Orleans this month rose on Chinese demand for U.S. supplies. Corn bids fell on reduced export shipments.
The spot-basis bid, or premium, for soybeans delivered in November rose to 46 cents to 47 cents a bushel above January futures, from 40 cents to 48 cents on Nov. 5, government data show. Corn premiums fell to 49 cents to 52 cents above December futures from 49 cents to 53 cents on Nov. 5.
"Chinese demand continues to be robust and should stay strong for the next four or five weeks,” said Roy Huckabay, an executive vice president for the Linn Group in Chicago. “The soybean-export program has slowed corn shipments.”
Soybean futures for January delivery fell 9.25 cents, or 0.7 percent, to close at $12.7475 a bushel on the Chicago Board of Trade. Corn futures for December delivery fell 2.5 cents, or 0.4 percent, to close at $5.8525 a bushel. Corn has jumped 60 percent since the end of June as adverse weather reduced U.S. production.
In the week ended Nov. 4, soybeans inspected for export fell 22 percent from the week-earlier total, which was revised up to 73.182 million from 60.260 million, USDA data show. The revision reflected an increase in the amount sent to China, the biggest consumer, which took 85 percent of the total last week.
Exports Gain
U.S. soybean-export shipments since Sept. 1 rose to 384.4 million bushels, up 32 percent compared with the same period a year earlier, USDA data show.
"Everyone wanted to talk about slowing shipments today, missing the upward revision from last week,” Huckabay said. “China soybean shipments will stay strong until South American supplies begin to become available in February.”
Corn inspected for export last week fell 17 percent to 24.89 million bushels, compared with 30.003 million a week earlier, the government said.
"Export demand for corn probably won’t increase for another four or five weeks,” Huckabay said.
