Corn harvest is under way across the Midwest, but this year’s low prices have most farmers storing the grain either on their farm or at local elevators, grain dealers said this week.

The lack of selling has limited the flow of grain into market channels. However, processors and exporters appear to have October needs covered so the light farmer selling has not yet pushed up basis bids, dealers said.

Late on Monday, USDA said the U.S. corn harvest was 9% done, which was the same as a year ago but down from the 12% average. Illinois corn was 9% harvested, Indiana 7%, Iowa 2% and Nebraska 2%.

River markets are quiet this week as shippers wait for new-crop supplies to become available. Basis bids at the Gulf for corn and soybeans moved lower in the past week, which is normal during harvest. (Photo: Ron Chapple Stock/Thinkstock)

The fungus diplodia continues to show up in the corn, but dealers said the incidence is low enough that the tainted grain can be easily blended to be suitable for marketing. Also, it appears the mold is limited to corn at the edges of fields.

Soybean harvest was just starting in a number of areas and the elevators said it was too early to assess yields and quality. Local weather forecasts for central Illinois call for hot, dry conditions this week, which should allow corn and soybean harvests to advance, said a local elevator.

River markets are quiet this week as shippers wait for new-crop supplies to become available. Basis bids at the Gulf for corn and soybeans moved lower in the past week, which is normal during harvest.

Corn at the Gulf was bid about 35 cents over December for September shipment, compared with 44 a week ago, and was bid 46 over for October shipment versus 52 a week ago. Soybeans for September shipment were bid 77 cents over November versus about 94 over a week ago. Soybeans for October were 70 cents over compared with 80 over a week ago.

A soybean train will be loaded out of central Illinois next week for shipment to the Gulf export market and some has been sold to the container market for shipment to Asia.

USDA’s weekly grain inspections for corn of nearly 50.6 million bushels were down from a week ago, but matched trade forecasts and topped the pace needed to meet USDA’s annual export forecast. Soybean shipments of 27.8 million also were down from a week ago, missed trade forecasts, and were below USDA’s projected weekly rate. Wheat shipments of 20.7 million were down from a week ago, matched forecast and topped the weekly rate needed to meet USDA’s forecast.

Shipments

USDA said barge grain shipments during the weekend Sept. 10 were 529,235 tons, down 38% from the prior week but up 29% from a year ago.

In the rail sector, grain car loadings totaled 24,455 for the week ended Sept. 3, up 13% from the prior week and up 30% from a year ago, said USDA’s Grain Transportation Report.

For truckers, the U.S. average diesel fuel price dropped 1 cent in the latest week at $2.40 per gallon. That is down 12 cents from the same week last year.

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