The opening of the river system has brought a raft of empty barges upstream, as transportation costs continue to fall, helping to strengthen basis in many areas after the roll to May futures contracts.
Harvest barge freight even eased a little in the latest week; though it remains expensive, it's actually trading below levels seen during the fall for the past four years.
Other transportation modes are also seeing lower costs, thanks to falling diesel prices. While gasoline prices are rising as motorists return to the highways, diesel remains subdued; the on-road retail price fell below $2 a gallon in the latest week. In addition to lower trucking costs, fuel surcharges on rail shipments for March fell around 3 cents per mile per car. That cuts the cost of moving grain to the West Coast by a penny and a half a bushel.
For more information read the Weekly Basis Review.
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