December 3, 2010

CBOT soy and corn premiums remain steady

Cash premiums for US soy and corn shipped to export terminals near New Orleans this month were steady against futures as farmers withheld supplies amid falling prices on CBOT.

The spot-basis bid, or premium, for soy delivered in November was unchanged at US$0.74-US$0.78 a bushel above January futures, according to the USDA data. Corn premiums were US$0.39-US$0.46 a bushel above March futures. Yesterday, the spot basis was quoted on the soon-to-expire December futures.

"It is quiet because farmers already sold all the corn and soy they plan to deliver this month, when prices were higher," said an analyst. "We should see the basis firm a little because export demand is expected to remain active into January", he said.

Soybean futures for January delivery fell by US$0.0325 or 0.3%, to close at US$12.7975 a bushel on CBOT. The commodity touched a 26-month high at US$13.485 on November 12 amid rising Chinese demand.

Corn futures for March delivery dropped US$0.1075 or 1.9%, to close at US$5.555 a bushel on the CBOT. The most-active contract fell 6.5% in November which is the first monthly decline since May.