Corn, Soybeans Premiums Rise as Farmers Slow Sales on Rain Delay

Cash premiums for corn and soybeans shipped in April to terminals near New Orleans declined relative to Chicago futures after adverse weather threatened to delay planting, prompting farmers to slow sales.

The spot-basis bid, or premium, for corn delivered this month was 54 cents to 60 cents a bushel above May futures, compared with 54 cents to 57 cents yesterday, U.S. Department of Agriculture data show. The soybean basis for April deliveries rose to 64 cents to 68 cents a bushel from 58 cents to 67 cents. The average premium, 66 cents, is the highest in almost four weeks.

“The basis is firmer because of slow farmer selling as many remain nervous about planting delays,” said Tim Emslie, the research director for Country Hedging Inc. in Inver Grove Heights,Minnesota. “Exporters are raising bids to get elevators to sell some inventories.”

Corn futures for May delivery fell 16.25 cents, or 2.2 percent, to $7.3275 a bushel on the Chicago Board of Trade.

Soybean futures for May delivery rose 15.75 cents to $13.5775 a bushel, the highest settlement for the contract since April 11.

(Source: http://www.bloomberg.com/news/2011-04-20/corn-soybeans-premiums-rise-as-farmers-slow-sales-on-rain-delay.html)