Supplies of new-crop corn and soybeans have filled local processors and grain exporters through October and in some cases early November as harvest of both crops gains traction, grain dealers said this week.
Bids for corn firmed slightly at Gulf export points in the past week, while those for soybeans declined. However, local processors still had the better bids, dealers said.
The high water that briefly shut a lock last week on the Mississippi River has passed and river shippers said barges were being loaded for the gulf. Those barges were sold some time ago when bids were higher. Lately very few new sales of corn and soybeans were being made for the Gulf, they said.
Corn at the Gulf was bid about 42 cents over December for October shipment, compared with 38 a week ago. Soybeans for October shipment were bid 46 cents over November versus about 57 a week ago.
Barge rates for shipment to the Gulf have declined due to a glut of empty barges.
“Because of delays in the harvest all of the empties backed up,” one river shipper said.
At mid-Mississippi points, barges for next week’s shipment were bid this week at 390% of tariff versus 500% a week ago. The 110-point decrease equates to a decrease in shipping costs of about 14 cents for a bushel of corn and 15 cents for soybeans.
Late on Monday, USDA said the U.S. corn harvest was 35% done, which trailed the five-year average’s 38%. Soybean harvest was at 44% versus the 47% average.
USDA’s weekly grain inspections for corn of 44.6 million bushels were down from a week ago and matched trade forecasts. They topped the pace needed to meet USDA’s annual export forecast. Soybean shipments of 66.2 million were up sharply from a week ago, beat trade forecasts, and topped USDA’s projected weekly rate. Wheat shipments of 15.9 million were down from a week ago, matched forecasts.
USDA said barge grain shipments during the weekend Oct. 1 were 695,317 tons, up 56% from the prior week and down 21% from a year ago.
In the rail sector, grain car loadings totaled 25,129 for the week ended Sept. 24, up 12% from the prior week and up 13% from a year ago, said USDA’s Grain Transportation Report.
For truckers, the U.S. average diesel fuel price rose 1 cent in the latest week to $2.39 per gallon. That is down 10 cents from the same week last year.
Weekly Grain Movement - Oct. 4, 2016 - River shipments delayed as locks close
Weekly Grain Movement - Sept. 27, 2016 - Iowa farmers await dry weather to resume harvest