Soybean Premiums Drop as U.S. Farmers Boost Sales Following Futures Rally

Cash premiums for soybeans shipped to export terminals near New Orleans declined relative to Chicago futures as farmers increased sales after prices rallied for a ninth straight session. Corn premiums were unchanged.

The spot-basis bid, or premium, for soybeans delivered in August dropped to 80 cents to 94 cents a bushel above November futures on the Chicago Board of Trade from 92 cents to $1 on Aug. 6, U.S. Department of Agriculture data show. Corn premiums for delivery this month were 25 cents to 30 cents above September futures.

“The cash soybean market is weaker because farmers are moving more of last year’s crop,” said Dax Wedemeyer, an analyst at U.S. Commodities Inc. in West Des Moines, Iowa.

Soybean futures for November delivery rose 1.5 cents, or 0.1 percent, to close at $10.35 a bushel at 1:15 p.m. on the Chicago Board of Trade. Prices gained for the ninth straight session, the longest rally since September 2007.

Corn futures for September delivery fell 2 cents, or 0.5 percent, to $4.03 a bushel. On Aug. 5, the price reached $4.2525, the highest level for the contract since Jan. 12.

Government inspectors examined 7.13 million bushels of soybeans for export in the week ended Aug. 5, down 40 percent from a year earlier, the USDA said today in a report. Corn inspections rose 17 percent.

“Soybean shipments are slowing because exporters are waiting for big crops” that farmers will begin harvesting in the next six weeks, Wedemeyer said. “Corn demand is holding up a little better.”