March 14, 2016
Gains in corn and soybean futures over the past week prompted more farmer selling of corn and soybeans, with corn bids at $3.70 to $3.80 in some locations and soybeans from $8.60 in the western Midwest to about $9.02 in Indiana, Midwest grain dealers said on Monday.
While those numbers are still less than what many farmers need to break even, they are better than what has been bid in recent weeks.
An elevator in western Iowa bought about 30,000 bushels of corn a day last week and about 50,000 on Monday morning. In Illinois, more soybeans were moving than corn, with nearly all of it being old crop.
Higher markets prompt farmer selling
Mild weather through the Midwest so far in March has had farmers applying anhydrous and doing other fieldwork. Spring planting is still a few weeks away as crop insurance protection does not take effect until early April.
Corn trains continue to be loaded for the southeast poultry and ethanol markets. Near the Mississippi River, Midwest ethanol plants have raised bids for April and May delivery to compete with the river market. Corn is currently bid 10 cents over the May near the Quad Cities for April delivery. That is up 2 cents from a week ago.
A grain elevator in central Iowa reported increased demand by ethanol plants there and has trains scheduled for shipment to them each month from now to September.
On the Mississippi River, barges of corn and soybeans continue to be loaded for shipment to the Gulf. Water levels have been adequate and warm weather has decreased ice accumulations.
CIF soybeans for March positions at the Gulf firmed about 2 cents in the past week and on Monday were bid about 42 over the May. Corn bids firmed for March from last week and bid about 37 over the May.
USDA’s weekly export inspections on Monday had corn shipments at 31.5 million bushels, down from a week ago and a little shy of the 39.9 million pace needed to meet USDA’s annual forecast. Japan, Mexico and Colombia were the leading destinations.
Soybean shipments of 26.3 million bushels were down from a week ago but easily topped the pace needed to meet USDA’s annual forecast. China was the leading destination.
Wheat shipments of 14.9 million bushels were down from a week ago and down from the pace needed to meet USDA’s annual forecast. Year-to-date shipments are down about 12% from a year ago.
USDA’s weekly grain transportation report said for the week ending March 5, 267 grain barges moved down river, down 5% from the previous week; 795 grain barges were unloaded in New Orleans, up 8% from the previous week.
The report also said that during the week ending March 7, U.S. average diesel fuel prices increased 3 cents from the previous week to $2.02 per gallon. That is down 92 cents from the same week last year.
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