February 19th, 2009

All grain markets started the day higher as crude oil traded higher and ended up $4 a barrel. Corn closed up 4 cents, wheat up 8 cents and soybeans down 3 cents today. The nearby cash market basis for corn and beans was weaker today as the stronger basis earlier in the week and harder roads have allowed more deliveries. South America weather reports will now give way to South America yield reports as the combines will start rolling shortly in some areas. Export sales will be out tomorrow morning with estimates on corn at 31-47 million bu and soybeans 22-33 mbu. It will be interesting to see if crude oil can continue to rebound and if so will it be because of supply or possibly an increase in DEMAND.