November 25, 2010

CBOT corn premiums narrow as soy remains steady
 

Cash premiums for US corn shipped to export terminals near New Orleans this month narrowed against futures after prices climbed for the second straight day, while soy bids were steady.

The spot-basis bid, or premium, for corn delivered in November was US$0.50 to US$0.53 a bushel above December futures, compared with US$0.50 to US$0.54 yesterday, government data showed. Soy premiums were unchanged at US$0.72 to US$0.76 a bushel above January futures.

"Corn-export business is relatively quiet, reducing demand after the futures rally," said an analyst. "Soy buyers would like to buy some additional inventories."

Corn futures for December delivery gained US$0.1025 or 1.9%, to close at US$5.3875 a bushel on the CBOT. Yesterday, the price gained 2.6%, partly on speculation that China's import demand will increase.

Soy futures for January delivery rose US$0.16 or 1.3%, to US$12.55 a bushel on increased export sales to China as dry weather threatened some newly planted crops in South America.

On November 12, the oilseed reached US$13.485, the highest for a most-active contract since August 28, 2008.

US markets will be closed on Thursday (Nov 25) for the Thanksgiving holiday.