Spot basis bids fell sharply on the Illinois River on Wednesday, pressured by a steep gain in shipping costs on the waterway, while basis bids were largely steady to higher elsewhere in the US Midwest, grain merchants said.
Shipping costs increased 45 percentage points to 440 percent of tariff on the Illinois River following a recent spike in farmer sales on the waterway while there are not enough empty vessels in the area to ship the grains down river, trader sources said.
Barge freight up sharply on the Mississippi River at St. Louis and modestly higher on the lower Ohio River. Corn bids were 10 cents higher at a port terminal in northern Indiana and firm at rail terminals in the southern US Plains. Soyabean bids faded 2 cents at an elevator in Des Moines, Iowa, and were flat at other elevators and processors.
Light farmer sales noted but the volumes were smaller than sales on Tuesday. Sales of soyabeans were said to be larger than sales of corn. Many producers are bullish and willing to delay sales on ideas of further gains in prices. Soft red winter wheat bids were flat even as wheat futures gained for the fifth straight day, notching a three-week high on hopes of increased export demand.
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