June 9 (Bloomberg) -- Cash premiums for corn and soybeans shipped in June to terminals near New Orleans were unchanged relative to Chicago futures after the government projected tightening grain supplies.
The spot-basis bid, or premium, for corn delivered this month was 63 cents to 65 cents a bushel above July futures, U.S. Department of Agriculture data show. The average cash price rose to a record $8.495 a bushel. The soybean basis was 75 cents to 80 cents a bushel above July futures.
“The cash corn market is strong, and the cash basis will likely stay firm” after the U.S. government predicted reserves before the 2012 harvest would be the smallest since 1996, said Glenn Hollander, a partner at Chicago-based Hollander & Feuerhaken, a cash grain broker. “We have not seen any evidence of price rationing yet, and the people who have the corn are going to wait for higher prices.”
Corn futures for July delivery jumped 21.5 cents, or 2.8 percent, to $7.855 a bushel on the Chicago Board of Trade. The price has more than doubled in the past year and touched $7.93 today, the highest since June 30, 2008.
Soybean futures for July delivery fell 7.75 cents, or 0.6 percent, to $13.9375 a bushel, the first drop in three sessions. The contract has climbed 51 percent in the past year.
The USDA today lowered its projection for the domestic corn crop by 2.3 percent to 13.2 billion bushels and cut its forecast for inventories that will be left from this year’s crop before the 2012 harvest by 23 percent to 695 million bushels.
“The market will be focused on the weather the next 90 days,” Hollander said.
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