Based on demand from shippers and somewhat higher barge freight costs, basic offers for barge-delivered corn to the US Gulf Coast were reaffirmed on Monday. By contrast, traders said barge spot soybean offers held steady despite signs of a revival in soybean export activity.
Barge-loaded corn in January was offered at 80 cents over March futures (CH3) on the Chicago Stock Exchange (CBOT), up 5 cents from the previous day. The February barge price of corn was 85 cents on futures, up 3 cents from the previous day.
While wheat export inspections of 334,217 tons were marginally higher than last week’s inspections, corn export inspections of 727,643 tons were lower than the totals from a week ago. Both results matched analysts’ expectations.
FOB supply for February corn shipments held steady at around 88 cents over CBOT March futures, while supply for March shipments increased by 4 cents to around 93 cents over futures.
CIF Gulf barges full in January were offered for soybeans at 110 cents on March CBOT futures (SH3), which is the same price as Friday. Barge bids for February soybeans rose 2 cents from Friday to 100 cents on futures.
Down 5 cents on Friday, FOB offers for February soybean shipments were around 125 cents over March futures.
Soybean base generally steady-weak, mixed corn offerings
This week, barges on the Illinois River were advertised at 700% rate, up from 675% on Friday. On the Mississippi River north of St. Louis, delays were reported around Lock 27 and the Melvin Price Locks, as well as near the LaGrange Lock and Dam on the Illinois River.
For the fourth straight session, Chicago soybean futures fell on Monday as rain in Argentina’s arid growing regions allayed concerns about crop damage. As the moisture required for winter wheat crops was provided by snow and rain over parts of the US Great Plains, wheat fell to nearly 16-month lows. Corn also declined, along with soybeans.
The most active soybean contract on the Chicago Stock Exchange fell 16 1/4 cents to finish at $14.90-1/4 a bushel after hitting $14.79-3/4, its lowest level since 10 from January. Although the prolonged drought in recent weeks may have already damaged much of the crop, the rain forecast in Argentina over the weekend is expected to help soybean crops. More rain is forecast for the following week.
On Monday, spot offers for soybeans were largely flat at elevators across the Midwestern United States and virtually unchanged to decline at processing plants, according to traders.
Basic offers for spot corn barely agreed. On Monday, farmers’ sales were weak as futures markets took a sharp fall. At a major processor in Decatur, Illinois, the base supply of spot corn rose 5 cents a bushel while it fell 15 cents at a processor in Blair, Nebraska.
In Sioux City, Iowa, a soybean crusher lowered its spot offer by 10 cents a bushel. After two additional processors in the area shut down unexpectedly last week for repairs, a broker said local soybean supplies were plentiful.
