US soy premiums narrow as farmers may boost sales

Cash premiums for soy shipped to export terminals near New Orleans narrowed relative to Chicago futures on speculation that US farmers are selling supplies from last year's harvest.

The spot-basis bid, or premium, for soy delivered in June narrowed to 65 cents to 68 cents a bushel above July futures from 66 cents to 68 cents earlier, USDA data show. Farmers are selling because July futures are 33.25 cents above the November contract. Corn's premium was unchanged at 37 cents to 39 cent a bushel above July futures.

Soy futures for November delivery, after this year's US harvest, rose 9 cents, or 1%, to US$9.245 a bushel on the CBOT. The most-active contract has declined 12% this year.

Meanwhile, corn futures for December delivery, after the harvest, rose 2.25 cents, or 0.6%, to US$3.7725 a bushel on the CBOT. Corn is down 9% this year, partly on forecasts for increased US production.