Market Matters Blog

This Wednesday's national average soybean basis of 7 cents under the May futures is 1/2 cent lower than last week, but continues to move well above the five-year average of the strongest basis at this time. Basis levels were mixed for soybeans after some end-users met their nearby needs late last week when the cash price was as high as $15.30 in parts of Illinois and Indiana and $15.00 to $15.20 in parts of Nebraska and Iowa There were reports of end-users pushing cash bids for next month before the farmers headed to the fields. Late last week, we saw mixed basis levels along the river as barge freight remained steady to unchanged in most corridors and demand was steady for deliveries to the Gulf. As the record soybean crop continues to be harvested in Brazil, the U.S. could see soybean exports slow. However, Brazil is still experiencing logistical issues at their ports and on their roads, in addition to threats of a strike by port workers. All these could delay shipments.

Shipments of corn, soybeans and wheat increased last week. "During the week ending March 9, barge grain movements totaled 560,315 tons, 66% higher than the previous week, but 5.6% lower than the same period last year. During the week ending March 9, 376 grain barges moved down river, up 72.5% from last week; 380 grain barges were unloaded in New Orleans, down 24.5% from the previous week," USDA reported. With improved water levels, especially in the St. Louis area, barges were able to easily navigate the river. USDA reported that barge movement down the Mississippi River through the main LOCK 27 at Illinois was 33.7% higher than last year for the week ending March 9.

As the weather warms barges will soon be heading a little further north -- as soon as ice dams are no longer an issue. In the far northern corridor of the Mississippi River, ice issues are a concern on tributaries and the ice is still too thick in Lake Pepin for ice breakers to attempt to open the water. In the Twin Ports of Duluth/Superior, ice breakers were in full swing as of Monday, readying the ports for the 2013 shipping season.

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