Corn Futures and Options Trading:
Soybean, Corn Cash Premiums Gain on Higher Demand for
Reduced U.S. Supply
By Jeff
Wilson - Jul 8, 2010
Cash premiums for soybeans and corn shipped to export terminals near New
Orleans rose relative to Chicago futures as U.S. farmers withheld supplies
and overseas demand increased.
The spot-basis bid, or premium, for soybeans
delivered this month was 80 cents to 95 cents a bushel above August futures,
compared with 80 cents to 90 cents yesterday, U.S. Department of Agriculture
data show. The corn premium rose to 40 cents to 45 cents a bushel above
September futures, compared with 40 cents to 43 cents.
“Farmers are beginning to let loose of some
corn and soybeans, but the pipeline supplies have not been replenished” to
load ships a risk consultant for Mid-Co Commodities Inc. in Bloomington,
Illinois. “We have a battle for supplies between processors and exporters.”
Soybean futures for August delivery gained 15.25 cents, or 1.6 percent,
to $9.83 a bushel on the Chicago Board of Trade. Prices rose 2.9 percent
yesterday, the biggest advance for the contract since Oct. 12. The oilseed
has climbed 5.6 percent this month after the USDA said that inventories as
of June 1 fell to the lowest level since 2004.
Corn futures for September delivery rose 7.25 cents, or 1.9 percent, to
$3.855 a bushel. The contract jumped 6.6 percent last week after the USDA
said farmers planted less this year than they planned.
U.S. exporters sold 116,000 metric tons of soybeans for delivery before
Aug. 31 to China, the Department of Agriculture said today. Ethanol
production in the U.S. rose 2.8 percent in the week ended July 2 from a week
earlier, an Energy Department report showed today.
“There was talk that China was buying more U.S. soybeans today,” Uhe
said. “Ethanol processors are running near full capacity.”
