Farmers were light sellers of old-crop corn this past week as they cleared bins and raised cash in preparation for the fall harvests, Midwest grain dealers said this week.
In Illinois, some of the sales were spurred by farmers wanting to avoid a minimum storage fee grain that elevators assessed on August 31 for grain still in commercial bins. The one-time fee ranged from 20 to 22 cents a bushel.
Corn harvest is under way in central Illinois near Springfield with early yields of 190 to 205 bushels per acre reported. Grain moisture was about 24%.
In Iowa, dealers said corn harvest was still a few weeks away, but the corn and soybeans were maturing well. Several inches of rain fell on western and eastern ends of the state in the past week, causing ponding in fields. However, the impact on the crops was not yet known, dealers said.
In USDA's weekly crop condition report released late on Monday, Iowa said corn slipped 1 point to 81% good to excellent and soybeans dropped 1 to 76%.
In southern Indiana, one dealer speculated some corn harvest could be under way in a week to 10 days. The hot weather due this week should help dry down the corn, she said.
In Illinois, elevators shipped corn by train to the southeast poultry and ethanol markets. Even with harvest under way in that region, Midwest dealers said apparently it was not enough to supply the end users there.
"The soybean basis crashed last week so we haven't been shipping many of those," said a central Illinois dealer.
In Iowa, a train of corn went to the east coast, possibly for hog farms there.
"It is not a first for us, but it is a first for this year," said the Iowa dealer who sent the corn east.
River markets are quiet with little demand for corn or soybeans at the gulf. An Iowa shipper said soybeans from the harvest in the U.S. southeast were satisfying the light export demand at the Gulf. The gulf soybean basis dropped 3 to 4 cents since late last week, he said.
"We are not loading barges and nobody is selling anything," the shipper said.
USDA's crop condition ratings late on Monday showed a 1 point slide in the overall corn rating to 68% good to excellent, while soybeans were unchanged at 63%
USDA's weekly export inspections came out on Monday and corn and wheat shipments at 39.4 million and 22.1 million bushels were up from a week ago and topped trade forecasts, while the soybeans at 6.8 million were down from a week ago and matched trade forecasts.
Year-to-date corn shipments are down about 83 million bushels from last year's pace, while year-to-date soybean shipments are nearly 235 million bushels ahead of the year ago pace. About 10 days remain in the corn and soybean crop years. The wheat year is about three months old and shipments trail last's year pace by 54.9 million bushels.