Corn Premiums Drop on Reduced Demand; Soybean Basis Gains
Cash premiums for corn shipped in April and May to terminals near New Orleans fell relative to Chicago futures as demand weakened. Soybeans basis rose as farmers withheld crops.
The spot-basis bid, or premium, for corn delivered in the first half of this month was 51 cents to 55 cents a bushel above May futures, compared with 57 cents to 60 cents yesterday, U.S. Department of Agriculture data show. Deliveries in the second half of April and all of May fell as much as 8 cents. The soybean basis for delivery in April rose to 58 cents to 67 cents a bushel from 58 cents to 66 cents.
“Export trade seems to be a little weaker, and some commercial companies may be selling some corn,” said Glenn Hollander, a partner at Chicago-based Hollander & Feuerhaken, a cash trader and futures broker. “Less soybeans are moving off farms,” tightening supplies, he said.
Corn futures for May delivery gained 3 cents, or 0.4 percent, to $7.555 a bushel on the Chicago Board of Trade today. Soybean futures for May delivery rose 3.75 cents, or 0.3 percent, to $13.335 a bushel on the CBOT.
“Some of the river terminals may have to halt or slow loadings next week,” Hollander said. “It’s nothing unusual for this time of the year.”
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