Corn and soybeans are in demand at U.S. Gulf export points and export shippers there raised basis bids slightly to get loads down there, but the resulting demand on barges to move those crops raised freight rates resulting in lower basis bids to farmers.

Barge rates went to 238% of tariff late last week on the mid-Mississippi from 235% a week earlier and to 160% at St Louis from 153%. However, those rates are down considerably from year-ago levels.

Much of the demand has been for corn with USDA reporting 307,000 tons of corn shipped by barge last week, compared with 197,000 a year ago. Add in wheat and soybeans and the week’s total was 489,000 tons versus 362,000 a year ago.

A Mississippi River merchant said rising water could make it difficult for barges to move through the locks. (Photo: Evren Kalinbacak/Thinkstock)

CIF corn bids for March positions at the Gulf firmed about 2 cents in the past week and were bid about 40 over the May on Monday. Soybean bids went to 43 over May from 42. Meanwhile, corn near the Quad Cities was bid 4 under May to farmers, down 1 from Friday.

Barge loadings have been active in the Quad Cities area but rising water could slow the process. A river merchant said forecasts have the water reaching levels this week that could make it difficult for barges to move through locks.

Farmer selling of corn and soybeans continued this past week but at slower pace than in previous weeks. Many farmers are focused on fieldwork, such as spring tillage and fertilizer applications. Planting is still a few weeks away, largely because crop insurance protection for most areas becomes available in April.

Fieldwork in Iowa may be stopped temporarily this week as forecasts call for 6 to 10 inches of snow on Thursday. However, warmer weather after that should quickly melt it.

An elevator in western Iowa bought about 15,000 bushels of corn on Monday and about 20,000 a day last week. Those volumes are down from the 30,000 bushels of corn a day two weeks ago. Nearly all of that business is old crop, but the merchandiser did buy a small amount of new-crop corn and soybeans.

A central Illinois merchant continues to ship corn trains to the Southeast, with three trains scheduled there this month. Local ethanol plants have firmed bids for corn to be competitive, he said.

USDA’s weekly export inspections on Monday had corn shipments at 39.9 million bushels, up from 32.1 million a week ago and matched the 39.9 million pace needed to meet USDA’s annual forecast. Japan, Mexico and Peru were the leading destinations.

Soybean shipments of 21.1 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 17.2 million bushels were up from a week ago and a little more than what was needed to meet USDA’s annual forecast. Year-to-date shipments are down about 12.5% from a year ago.

USDA’s weekly grain transportation report said  during the week ending March 14, U.S. average diesel fuel prices increased 7.8 cents from the previous week to nearly $2.10 per gallon. That is down nearly 82 cents from the same week last year.

Weekly Grain Movement - March 7, 2016 - River shipping starts; soybean barges loaded.

Weekly Grain Movement - March 15, 2016 - Higher markets prompt farmer selling