All it took was a one-month high in corn futures and a six-week high in soybean futures to encourage farmers to sell more of their 2015 harvest.
Grain dealers throughout the Midwest on Monday reported a moderate increase in farmer selling late last week when Chicago corn and soybean futures sped higher following a sharp drop in the dollar. Cash corn bids ranged from $3.50 to $3.75 in a number of markets and soybeans from $8.60 to $8.90 during the height of the rallies. An ethanol plant in southern Indiana went to $4.05 on corn delivered to the plant, but that appeared to be a rare bid.
"We had a pretty good week last week, probably more soybeans than corn," an eastern Iowa merchandiser said of the farmer sales.
Monday's lower futures plus a drop in basis bids had farmers quickly shutting bin doors. Unless there is another spike in prices, dealers said farmers will likely wait until the new tax year before selling more.
Local processors, ethanol plants and export markets lowered basis bids a few cents in response to the farmer selling.
Grain and soybean shipments from elevators were largely staying local, with many being trucked to processors and ethanol plants. An Iowa shipper on the Mississippi was loading a few soybean barges for Gulf export points, but those barges may be last on the upper Mississippi for the season as work on a lock and dam south of the Quad Cities will soon close the river until spring.
USDA's weekly export inspections on Monday showed soybean shipments at 63.2 million bushels, down from last week but better than trade forecasts and still above what is needed to meet USDA's annual export forecast. China was again the largest recipient. Year-to-date shipments for the crop year are 802.7 million bushels, down 8% from a year ago.
Corn export shipments of 19.4 million bushels were up 48% from a week ago and within trade forecasts, but short of the 38.8 million needed to meet USDA's annual number. Mexico was the largest market. Year-to-date shipments for the crop year are 285.4 million bushels, down 25% from a year ago.
Weekly wheat shipments of 8.3 million bushels were down from a week ago and matched forecasts, but missed what is needed to meet USDA's annual target. Taiwan, Japan and Mexico were the leading markets. Year-to-date shipments for the crop year that began June 1 are about 387 million bushels, down 15% from a year ago.