Corn Premiums Decline as Chicago Futures Jump; Soybean Basis Is Unchanged

Cash premiums for corn shipped to export terminals near New Orleans fell relative to Chicago futures after prices jumped the most this month, eroding demand for inventories. Soybeans premiums were unchanged.

The spot-basis bid, or premium, for corn delivery in July dropped to 29 cents to 33 cents a bushel above September futures from 30 cents to 33 cents yesterday, U.S. Department of Agriculture data show. The average spot premium fell to the lowest level in more than six months. Soybean premiums for delivery this month were unchanged at 78 cents to 90 cents above August futures.

“The cash corn market is weak with most elevators and processors holding what they need before the harvest begins” in September, said Ron Uhe, a risk consultant for Mid-Co Commodities Inc. in Bloomington, Illinois. “There is limited commercial ownership of soybeans, and farmers are holding the majority of what’s left” from last year, Uhe said.

Corn futures for September delivery rose 13.5 cents, or 3.7 percent, to settle at $3.7625 a bushel at 1:28 p.m. on the Chicago Board of Trade, the biggest gain since June 30. Yesterday, the price closed at the lowest level this month on bets that rains will boost yields.

Soybean futures for August delivery rose 12.5 cents, or 1.3 percent, to settle at $10.105 a bushel at 1:31 p.m. in Chicago. On July 16, the contract reached $10.27, the highest price since Jan. 8.

As of June 1, oilseed inventories from last year’s harvest were 571 million bushels, the USDA said June 30. That marked the lowest level since 2004.

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

• Tweet
• More
  • Business Exchange
  • Buzz up!
  • Digg
• Print
• Email