Soybean Premiums Widen as U.S. Supplies Fall; Corn Basis Steady

Cash premiums for soybeans shipped in April to terminals near New Orleans rose relative to Chicago futures as farmers withheld supplies after prices fell. The corn basis was unchanged.

The spot-basis bid, or premium, for soybeans delivered this month was 58 cents to 62 cents a bushel above May futures, compared with 58 cents to 60 cents on April 8, U.S. Department of Agriculture data show. The corn basis for delivery in the first half of April was unchanged at 56 cents to 57 cents a bushel. Premiums rose for delivery in the second half of April and the first half of May.

“Soybean exporters needed a few bushels, and farmers are done selling until they see higher bids,” said Scott Stoller, a merchandiser for Michlig Agricenter Inc. in Manlius, Illinois. “Corn exports are set to improve the next several weeks, so there is a stronger bid developing for later delivery.”

Soybean futures for May delivery fell 23.75 cents, or 1.7 percent, to $13.685 a bushel on the Chicago Board of Trade, the biggest decline for the contract since March 15. Corn futures for May delivery rose 8 cents, or 1 percent, to $7.76 a bushel.

(Source: http://www.bloomberg.com/news/2011-04-11/soybean-premiums-widen-as-u-s-supplies-fall-corn-basis-steady.html)