Cash premiums for soybeans and corn shipped this month to terminals near New Orleans rose relative to Chicago futures as a snowstorm in the Midwest threatened to curb shipments.
The spot-basis bid, or premium, for soybeans delivered in January at Gulf of Mexico ports rose to 60 cents to 66 cents a bushel above March futures, compared with 60 cents to 64 cents on Jan. 28, U.S. Department of Agriculture data show. Corn premiums rose to 38 cents to 50 cents a bushel over March futures, from 38 cents to 49 cents.
“Everyone is trying to figure out what to do with this blizzard coming in,” said Diana Klemme, the director of the grain division for Grain Service Corp., a consulting and brokerage company in Atlanta. “That will tend to be a little supportive to the basis, because it’s hard to get trucks on the road.”
Soybean futures for March delivery climbed 15 cents, or 1.1 percent, to settle at $14.13 a bushel at 1:15 p.m. on the Chicago Board of Trade. The price gained 0.7 percent this month. The most-active contract is up 55 percent in the past year.
Corn futures for March delivery rose 15.5 cents, or 2.4 percent, to $6.595 a bushel. The price added 4.8 percent this month and is up 85 percent in the past year.
Parts of Illinois, Iowa and Missouri may receive as much as 18 inches (46 centimeters) of snow through Feb. 2, “making travel extremely dangerous,” according to the National Weather Service.