Corn, Soybean Premiums Rise as Farmers Curb Sales on Price Drop

Cash premiums for corn and soybeans shipped this month to terminals near New Orleanswidened relative to Chicago futures as U.S. farmers curbed sales following a slump in prices.

The spot-basis bid, or premium, for corn delivered in March at Gulf of Mexico ports was 52 cents a bushel above May futures, compared with 50 cents to 52 cents yesterday, U.S. Department of Agriculture data show. The soybean basis was 66 cents to 75 cents a bushel above May futures, compared with 66 cents to 70 cents, the USDA said.

“It was another quiet day of farmer selling” because much of the remaining U.S. inventory was sold as prices rallied during the past few months, said Brian Basting, a market analyst for Advance Trading Inc. in Bloomington, Illinois. “Exports for corn are picking up a little.”

Corn futures for May delivery fell 4.5 cents, or 0.6 percent, to $7.01 a bushel on the Chicago Board of Trade, capping the first four-day drop since Nov. 12. The most-active contract reached a 31-month high on Feb. 22 of $7.4425.

Soybean futures for May delivery dropped 33 cents, or 2.4 percent, to close at $13.49, the biggest drop since Feb. 22. The price touched a 30-month high of $14.5575 on Feb. 9.

(Source: http://www.bloomberg.com/news/2011-03-09/corn-soybean-premiums-rise-as-farmers-curb-sales-on-price-drop.html)