Corn was largely being shipped by truck to nearby processors as they offered better bids than the rail or river markets, Midwest grain dealers said on Monday.
Grain movement 6/1: River basis for corn drops
Corn barges are being loaded on the Mississippi River just north of St. Louis for delivery at Gulf export elevators, but that business had been booked months ago.
The basis for river-shipped corn to the Gulf and rail-shipped to the southeast poultry markets weakened slightly leaving local processors the best market. In addition, barge rates crept higher to hike shipping costs.
"Barge rates may increase during June as newly harvested wheat becomes available, but significant rate increases based upon historic trends are not likely to begin until August as the corn and soybean harvest begins," USDA's Grain Transportation Report said last week.
The Transportation Report said barge rates for the week ended June 2 were up 1% from the week before and up 5% from a year ago. At the mid-Mississippi, southbound rates were 378% of tariff, versus 370% the week before, or $20.11 per ton from $19.68.
Continue reading after the jump >>
Nearly all grain dealers reported an increase in farmer selling of old-crop corn late last week when corn futures moved higher, but very few soybeans moved.
Grain movement 5/26: Ethanol plants, local processors best markets for corn, soybeans
Abundant rain throughout the Midwest will cause some replanting of a few soybean fields and possibly some corn fields where ponding occurred. While the calendar indicates it may be too late to replant corn, dealers in eastern Iowa said farmers may do it anyway because the fertilizer and chemicals have been applied.
Weekly export inspections on Monday improved for soybeans, but were down from the week before for corn. Year-to-date business showed corn down 6% for corn and soybeans up 11.6%.
Wheat business for the crop year that started June 1, was down 62% from a year ago.