July 22, 2011

 

US corn, soy cash premiums decline on reduced exporter demand

 

 

US cash premiums for CBOT corn and soy shipped in July to export terminals near New Orleans narrowed relative to Chicago futures as demand slowed.

 

The spot-basis bid, or premium, for corn delivered this month was US$1.02-US$1.03 a bushel above September futures, compared with US$1.03-US$1.04 yesterday, USDA data show. The soy premium declined to 75 cents to 84 cents a bushel above August futures from 77 cents to 84 cents, the fifth drop in six sessions.

 

"It's extremely quiet," Glenn Hollander, a partner at Hollander & Feuerhaken, a cash grain merchandiser and broker in Chicago, said. "People are pulling back a bit and waiting to see if prices fall."

 

Corn futures for September delivery fell 8.75 cents, or 1.3%, to US$6.7925 a bushel on the Chicago Board of Trade, the third decline this week. On July 19, the price reached US$7.235, the highest for the contract since June 15.

 

Soy futures for August delivery rose 2 cents to US$13.8025 a bushel, the first gain in four sessions.

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