USDA Adjusts Louisiana Gulf Price Differentials

The U.S. Agriculture Department has narrowed by three cents the price differential between the Louisiana Gulf price of corn and posted country prices pegged to the gulf price, USDA officials said.

The change, effective April 27, means posted county prices will be three cents higher in the region, Robert Sindt, assistant deputy administrator of USDA’s Agricultural Stabilization and Conservation Service, said.

Trade sources said USDA adjusted the differentials because gulf prices had shown some weakness in recent days compared with the rest of the country.

Sindt said Louisiana Gulf corn price differentials that had been between four and eight cents would, effective Monday, range between one and five cents.

Trade sources said cash bids at the Louisiana Gulf have been between three and 4.5 cents weaker than in the rest of the country in recent days, and that USDA’s move would strengthen the front end of the corn market.