A few grain companies will raise storage rates the next few days for farmers who still have unsold old-crop supplies sitting in commercial elevators.
The increase in some instances will be about 18 cents a bushel to store grain until January, with the purpose being to make space for harvested supplies that will be arriving in a few weeks. While the rate increase may prompt some selling, farmers have known about the higher rates for a month and either sold then or decided to pay the price, dealers said.
Grain elevators have said the expected big corn and soybean harvests will likely overwhelm covered storage and lead to a large amount being piled on the ground. In southern Illinois, harvest may start shortly after Labor Day weekend, while further north and in Iowa it maybe mid to late September, dealers said.
Corn, soybeans stay local
Midwest elevators have been selling corn and soybeans to local processors and users as they had the best bids versus the Southeast rail market or Gulf export markets. Some processors in central Illinois were bidding about 55 cents over November for soybeans, they said.
Gulf soybean bids for September arrival dropped 2 cents the past few days to 110 over November and October is about 90 over versus 92.5 late last week.
The corn basis at the Gulf was unchanged at 62 cents over September for September but was down about 6 for the week at 62 cents over December for October.
USDA said barge grain shipments during the weekend Aug. 20 of 1.148 million tons were down 9% from the prior week and up 75% from a year ago.
In the rail sector, grain car loadings totaled 25,232 for the week ended August 13, up 5% from the prior week and up 28% from a year ago, said USDA’s Grain Transportation Report.
For truckers, the U.S. average diesel fuel price increased 6 cents in the latest week to $2.37 per gallon for the week ended August 22. That is down 19 cents from the same week last year.
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