Corn Premiums Decline as Demand Slows; Soybean Basis Unchanged

Cash premiums for corn shipped in April to terminals near New Orleans declined relative to Chicago futures as demand ebbed for U.S. grain. The soybean basis was unchanged.

The spot-basis bid, or premium, for corn delivered in the second half of this month was 56 cents to 58 cents a bushel above May futures, compared with 58 cents to 59 cents on April 15, U.S. Department of Agriculture data show. The basis for soybeans delivered in April was 58 cents to 64 cents a bushel.

“Demand is slowing because U.S. corn is not competitive with cheaper wheat supplies from overseas exporters,” said Dale Durchholz, the senior analyst at AgriVisor LLC in Bloomington,Illinois. “U.S. exporter buying also slowed after the futures rally today.”

Corn futures for May delivery rose 9.75 cents, or 1.3 percent, to $7.5175 a bushel on the Chicago Board of Trade. Last week, the contract dropped 3.4 percent, snapping a four-week rally.

Soybean futures for May delivery rose 12.5 cents to $13.4425 a bushel.

In the week ended April 14, corn inspected for export at U.S. ports tumbled 21 percent to 32.161 million bushels from a week earlier, the USDA said today. The amount fell to a seven- week low and was down 21 percent from a year earlier.

(Source: http://www.bloomberg.com/news/2011-04-18/corn-premiums-decline-as-demand-slows-soybean-basis-unchanged.html)