Corn Premiums Rise as Rain Slows Shipments; Soybean Basis Falls

Cash premiums for corn shipped in April to terminals near New Orleans gained relative to Chicago futures as rain slowed river shipments, boosting demand for immediate supplies. The soybean basis declined.

The spot-basis bid, or premium, for corn delivered this month rose to 59 cents to 65 cents a bushel above May futures, compared with 58 cents to 61 cents yesterday, U.S. Department of Agriculture data show. The spot bid climbed to the highest since April 11. The basis for soybeans delivered in April fell to 64 cents to 72 cents a bushel from 64 cents to 73 cents.

“Barge traffic has slowed, and corn basis has firmed” after heavy rain the past two weeks, saidRoy Huckabay, an executive vice president for the Linn Group in Chicago. “People are worried that delayed corn planting will increase demand for supplies” left from last year’s crops, he said.

Corn futures for May delivery rose 3.75 cents, or 0.5 percent, to $7.6625 a bushel on the Chicago Board of Trade.

Soybean futures for May delivery fell 6.75 cents to $13.8275 a bushel, the first drop in four sessions.

Major flooding is already reported at 58 locations, data from the National Weather Service show. Moderate flooding was reported at 111 stations, which include grain terminals and locks and dams, from North Dakota to Louisiana, the service said. A record crest on the Ohio River near Cairo, Illinois, is expected on May 1, and many locations from Cincinnati to Memphis, Tennessee, will prior all-time highs, according to the agency.

(Source: http://www.bloomberg.com/news/2011-04-26/corn-premiums-rise-as-rain-slows-shipments-soybean-basis-falls.html)