Corn Premiums Fall on Slow Demand, Shipping Delays; Soy Steady

Cash premiums for corn shipped in May to terminals near New Orleans fell relative to Chicago futures as export demand slowed and high river waters slowed shipments. The soybean basis was steady.

The spot-basis bid, or premium, for corn delivered this month was at 55 cents to 59 cents a bushel above July futures, down from 55 cents to 61 cents on April 29, U.S. Department of Agriculture data show. Soybeans basis bids were unchanged 64 cents to 70 cents a bushel above May futures.

“It’s a combination of reduced export demand and river flooding increasing uncertainty about barge shipment- schedules,” said Tim Emslie, the research manager for Country Hedging Inc. in Inver Grove Heights, Minnesota. “The market will be focused on weather and planting progress the next three weeks.”

Corn futures for July delivery fell 22 cents, or 2.9 percent, to close at $7.345 a bushel on the Chicago Board of Trade. Soybean futures for May delivery dropped 2.5 cents, or 0.2 percent, to close at $13.9025 a bushel on the CBOT.

(Source: http://www.bloomberg.com/news/2011-05-02/corn-premiums-fall-on-slow-demand-shipping-delays-soy-steady.html)