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Cash Corn, Soybean Premiums Are Unchanged After U.S. Farmers Reduce Sales
Cash premiums for corn and soybeans shipped to export terminals near New Orleans were unchanged relative to Chicago futures as U.S. farmers slowed sales, curbing available supplies, on speculation prices will rise.
The spot-basis bid, or premium, for corn delivered in September remained at 27 cents to 40 cents a bushel above December futures, U.S. Department of Agriculture data show. Soybean premiums were 60 cents to 70 cents above November futures, the same as yesterday.
“The guys in the commercial-elevator industry that have bins are worried about how they’re going to acquire ownership of grains,” said Dave Marshall, a farm-marketing consultant at Toay Commodity Futures Group LLC in Nashville, Illinois. “If the producer won’t sell, that’s going to be a big issue.”
Corn futures for December delivery rose 17 cents, or 3.8 percent, to close at $4.645 a bushel on the Chicago Board of Trade. Earlier, the price touched $4.67, the highest level for a most-active contract since June 2009.
Soybean futures for November delivery rose 26 cents, or 2.6 percent, to close at $10.35 a bushel in Chicago, the biggest gain since July 15. The price added 0.9 percent this week, the fifth increase in six weeks.
U.S. farmers may harvest about 13 billion bushels of corn, down from 13.11 billion a year ago, Memphis, Tennessee-based Informa Economics Inc. said today. Reduced production will further encourage growers to hold stockpiles while they wait for prices to rise, Marshall said.
“Elevators are afraid they’re not going to be able to fill up railcars because nobody wants to let their corn go,” Marshall said. For producers in the southeastern Midwest, where dry weather hurt crops, “the tendency will be to hold onto it as long as possible,” he said.
To contact the reporter on this story: Tony C. Dreibus in Chicago at tdreibus@bloomberg.net.
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