Cash premiums for corn and soybeans shipped this month to terminals near New Orleans were unchanged relative to Chicago futures as adverse weather threatened South American crops, while demand for U.S. supplies stalled.
The spot-basis bid, or premium, for corn delivered in December at Gulf of Mexico ports was unchanged at 43 cents to 44 cents a bushel above March futures, compared with bids on Dec. 23, U.S. Department of Agriculture data show. Soybean premiums were steady at 72 cents to 78 cents a bushel over January futures.
“Weather conditions continue to be supportive,” with the threat for smaller crops in Brazil and Argentina, said Tim Hannagan, a grain-market analyst for PFG Best Inc. in Chicago. “Potential new demand is simmering under the surface,” waiting for a drop in prices as year-end approaches, Hannagan said.
Corn futures for March delivery rose 1.25 cents, or 0.2 percent, to $6.1525 a bushel in Chicago, capping the first seven-day gain since Sept. 17. Futures have gained advanced 13 percent since Nov. 30, heading for the sixth monthly gain in seven months.
Soybean futures for January delivery rose 23.5 cents, or 1.7 percent, to $13.73 a bushel on the CBOT, after touching $13.7825, the highest ever for the contract.
Corn and soybean futures rallied today on speculation that adverse weather in parts of South America may increase Chinese demand for U.S. supplies, Hannagan said.
“If weather remains dry through January in Argentina, and moves to drier in Brazil, we could see a sharp demand surge for corn and beans” from China, Hannagan said.
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