Corn, Soybean Cash Premiums Decline on Reduced Exporter Demand
Cash premiums for U.S. corn and soybeans shipped in July to export terminals near New Orleans narrowed relative to Chicago futures as demand slowed.
The spot-basis bid, or premium, for corn delivered this month was $1.02 to $1.03 a bushel above September futures, compared with $1.03 to $1.04 yesterday, U.S. Department of Agriculture data show. The soybean premium declined to 75 cents to 84 cents a bushel above August futures from 77 cents to 84 cents, the fifth drop in six sessions.
“It’s extremely quiet,” Glenn Hollander, a partner at Hollander & Feuerhaken, a cash grain merchandiser and broker in Chicago, said in a telephone interview. “People are pulling back a bit and waiting to see if prices fall.”
Corn futures for September delivery fell 8.75 cents, or 1.3 percent, to $6.7925 a bushel on the Chicago Board of Trade, the third decline this week. On July 19, the price reached $7.235, the highest for the contract since June 15.
Soybean futures for August delivery rose 2 cents to $13.8025 a bushel, the first gain in four sessions.
To contact the reporter on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net.
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