Cash premiums for corn and soybeans shipped in July to terminals near New Orleans rose relative to Chicago futures as U.S. farmers withheld supplies after prices slumped on a report that June 1 inventories were larger than expected.
The spot-basis bid, or premium, for corn delivered next month was 66 cents to 71 cents a bushel above July futures, up from 64 cents to 68 cents yesterday, U.S. Department of Agriculture data show. The soybean basis rose to 74 cents to 78 cents a bushel from 74 cents to 77 cents.
“The cash market is working just enough to source a few bushels because farmers are done selling,” said Bryce Stremming, a risk consultant for Mid-Co Commodities Inc. in Bloomington, Illinois. “The cash market will determine the value of corn and soybeans, and right now it’s saying supplies are still a little tight.”
Corn futures for July delivery plunged 69 cents, or 9.9 percent, to $6.29 a bushel on the Chicago Board of Trade. Earlier, the price fell to $6.15, the lowest for the contract since January 10.
Soybean futures for July delivery dropped 28 cents, or 2.1 percent, to $13.0625 a bushel after earlier touching $12.90, the lowest for the contract since March 16.
Corn stockpiles as of June 1 were 3.67 billion bushels, 12 percent higher than the average estimate in a Bloomberg News survey, the USDA said today. Soybean reserves were estimated at 619 million bushels, 4.6 percent more than forecast and above year-earlier supplies.