Farmers sidelined by soggy fields used the time to sell old-crop corn, which pressured basis levels in a few locations as shippers, local processors and ethanol plants have enough for immediate needs, Midwest grain dealers said this week.
Grain Movement 6/8: Local processors take corn, beans
"I was hoping the rail market would get better but it took a hit when the corn started moving," said one Illinois dealer, who reported a 3-cent drop in the local basis last week.
More rain is on the way as storms from Tropical Storm Bill will extend north from Texas into Missouri, southern Illinois and southern Indiana. Excess moisture has raised speculation a few Illinois soybean fields may have to be replanted, dealers said.
"It is definitely going to be a wet week," said another Illinois dealer.
Grain elevators are shipping much of their grain by truck to local processors and ethanol plants. Demand in the rail market has been light and on the river some barges are being loaded with corn that was sold months ago.
Water levels are rising on the Mississippi due to the rain and some speed restrictions are in place on the mid-Mississippi. Minor flooding was reported from St Louis to the Iowa border and moderate flooding near Cape Girardeau. Operations were not affected on the Ohio River as water levels had been low and so far have not been affected by runoff from the rain, an Indiana shipper said.
"High water on the Mississippi River has required the Coast Guard to restrict traffic in the St. Louis area to day time only for barge tows greater than 600 feet in length. Elsewhere on the Mississippi River, flooding is occurring at Chester, Ill., Cape Girardeau, MO, and Thebes, Ill. Flooding is also reported at Beardstown, Ill., on the Illinois River," said USDA's June 11 weekly Grain Transportation Report.
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Barge rates inched higher last week on the Mississippi and Ohio Rivers but slipped on the Illinois River, the report said.
Grain movement 6/1: River basis for corn drops
Weekly export shipments increased for corn, soybeans and wheat in the latest week, with year-to-date soybean sales of 1.74 billion bushels ahead of last year, while corn's 1.33 billion trailed the year ago pace. Wheat sales in the first two weeks of the crop year were 19.4 million and trailed a year ago.
USDA on Tuesday announced at an export sale of 3.94 million bushels of 2014/2015 corn to unknown destinations and on Monday reported a 5.0 million-bushel sale of 2014/2015 corn to Japan.