Crop prices rose in the wake of USDA's latest monthly report as a smaller corn crop in Brazil and increased exports for U.S. corn, soybeans and wheat pulled investors into the futures market.

But Midwest grain dealers on Tuesday said the increases were not enough to pry loose more new-crop corn and soybeans from farmers.

“The prices are where they were last week. The farmers had seen them before,” an Illinois dealer said explaining the slow sales. “We hardly bought anything.”

Previously, the dealer said he bought a lot of new-crop corn when the board was at $4.20 and $4.30.

Crop prices rose in the wake of USDA's latest monthly report, but farmers aren't selling. (Photo: DarcyMaulsby/Thinkstock)

A western Iowa dealer said he bought about 10,000 bushels of new-crop during Tuesday’s corn rally, but more needed to be done. So far this summer, he said customers are covered on 35%-40% of their new-crop corn when it should be 45% to 50%.

The consensus among Midwest dealers is farmers became well covered on new-crop soybean sales when prices were higher than they are now, but needed to price more new-crop corn.

“Everybody is saying they did not sell enough,” said an eastern Iowa grain dealer of new-crop corn coverage.

Crops stay local for now

Corn and soybeans this week were being shipped to nearby processors, but the rail market for corn to the Southeast poultry and ethanol customers is currently about 3 cents better for August shipment than the processors.

“I just sold a train to the Southeast for August,” a central Illinois dealer said.

In the Quad Cities river market, corn and soybean barges are being loaded in July for the Gulf export points, but new sales have been slow as processors have the better bids.

“We are way out of it,” one river shipper said of his corn bids versus the processors. Currently, he was bidding 6 under the September versus 5 over by the processors.

USDA’s weekly grain transportation report said 771,700 tons of grain were shipped by barge during the week ended July 2, down 23% from the prior week but up 66% from a year ago.

For truckers, the U.S. average diesel fuel price slipped 0.3 cent in the latest week to $2.42 per gallon for the week ended July 4. That is down 41 cents from the same week last year.

Weekly Grain Movement - July 5, 2016 - Barge loadings active as corn, soy needed at the Gulf

Weekly Grain Movement - June 27, 2016 - Farmers stay home as Brexit rattles market

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