Houston — Prices for US corn, CIF New Orleans February basis, rose significantly Wednesday because delays at Pacific Northwest ports made buyers turn to the US Gulf Coast to secure their procurement, market sources said.
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US Yellow Corn No. 2 CIF New Orleans basis for February delivery was assessed Wednesday at 47 cents/bushel above the CBOT March corn futures contract, up 3.5 cents from Tuesday. The normal daily change is 1-2 cents.
"Severe weather conditions have caused considerable disruptions to our grain export executions from the Pacific Northwest coast," a market participant said. "Some elevators are still operating, albeit at a much slower pace."
Sources added there are serious logistical disruptions to rail service from the Midwest to Pacific Northwest export facilities. Vessel loadings have been affected by the difficulty in obtaining timely supplies.
Exports for February have been impacted, but it is uncertain how far into March the situation could last, sources said.
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