High water, a slowdown in Brazil's sales and expected sales to China firmed export bids this past week for soybeans in river markets, while corn bids there eased.
For the second consecutive week, China took most of the soybeans inspected for export. In addition, shippers said they expect China to be buying more new-crop soybeans to get coverage for September and October positions.
Talk circulated in cash markets that a slowdown in farmer sales in Brazil will shift export business to the U.S. The real’s value jumped about 5% in July against the dollar following the dollar’s drop to a one-year low. Since soybeans are sold in dollars, that hurt income for Brazilian farmers and caused a slowdown in sales.
Rain throughout the northern Plains and Midwest in July filled rivers and streams. Barge loadings were suspended for a few days in the Quad Cities because of high water on Mississippi River.
While soybean basis bids rose at the Gulf of Mexico, shippers have been reluctant to make new sales, because the slow farmer selling drained supplies available for loading. Shippers and other merchants raised bids to farmers a few cents in the past week, but the farmer selling remained slow.
At the Gulf on Monday, soybeans were bid 48 over August for July shipment versus 34 over a week ago and were 47 over August for August versus 35 over. Soybeans were bid 38 over November for September shipment versus 35 over a week ago. The latest Gulf bids for corn were about 18 over September for August shipment versus 24 over a week ago and were bid 22 over September for September shipment versus 27 a week ago, according to wire reports.
Crops in western Iowa and central Illinois have received beneficial rain since late last week and could still use some more, dealers said. Most of the corn and soybeans in Iowa and Illinois were in good shape, with rain needed in the aforementioned areas.
Drier weather was needed north of Interstate 80 from Des Moines, Iowa, to Chicago, Ill., where a parade of storms soaked fields, caused flooding along creeks and rivers and left standing water in crop fields.
Weather maps call for storms Tuesday in the Dakotas and Minnesota and Wednesday in Iowa, northern Illinois and Wisconsin. The latest 6- to 10-day outlook (July 29-Aug. 2) is cool and dry for the Midwest and central Plains and mild and dry for the northern Plains.
Gulf barge loadings
Barge grain loadings during the week ended July 15 totaled 920,438 tons, up 16% from the prior week and down 15% from a year ago, according to the U.S. Department of Agriculture’s "Grain Transportation Report."
Grain vessel loadings at the Gulf totaled 35 vessels during the week of July 13, down 15% from a year ago. Fifty-six vessels are expected to be loaded in the next 10 days, down 21% from a year ago, the report said.
In the rail sector, grain car loadings totaled 18,062 for the week ended July 8, down 23% from the prior week and down 13% from a year ago.
For truckers, the U.S. average diesel fuel price increased about 1 cent during the week ended July 17 to $2.49/gal. That is up 9 cents from a year ago.
The following charts show USDA’s latest weekly grain inspections.
Corn export destinations, bushels – week ended July 20 – USDA
Soybean export destinations, bushels – week ended July 20–USDA
Wheat export destinations, bushels – week ended July 20 – USDA