Corn Up on Farmers Withholding Supplies

Farmers in the U.S. have been withholding corn and cash premiums have risen as a result. Demand overseas has increased in the mix as well.

“Farmers are beginning to let loose of some corn and soybeans, but the pipeline supplies have not been replenished” to load ships, said Ron Uhe, a risk consultant for Mid-Co Commodities Inc. “We have a battle for supplies between processors and exporters.”

The corn premium surpassed September futures, increasing by 40 cents to 45 cents a bushel, in contrast to 40 cents to 43 cents a bushel.

Corn futures for September delivery increased 7.25 cents, or 1.9 percent, to $3.855 a bushel.