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River woes continue to pressure grain basis

Agriculture.com Staff 07/03/2008 @ 11:06am

Barge rates continued to move higher along the Mississippi and Illinois. Both river systems posted nearly 10-cent-per-bushel increases in barge rates over the last week as swollen rivers keep barge traffic limited.

At the Louisiana Gulf, basis levels were mixed with corn basis gaining ground while soybean basis came under pressure. Export sales continue to be strong for both corn and beans as this morning's weekly report showed numbers well above trade expectations. Weekly corn sales came in at 668,100 MT above the high end of expectations of 600,000 MT and soybean sales 642,400 MT well ahead of trade guesses which topped 450,000 MT.

Corn basis on average across the U.S. was mostly unchanged this week. However, sections of lower Midwest and South had gains of 2 cents or more for the week, while Northern sections were mostly unchanged to weaker.

For soybeans, basis levels were weaker along the river thanks to higher barge rates and losses in basis at the Gulf. However, areas not impacted by the river so gains of 3 cents or more.

Barge rates continued to move higher along the Mississippi and Illinois. Both river systems posted nearly 10-cent-per-bushel increases in barge rates over the last week as swollen rivers keep barge traffic limited.

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