February 24th, 2009

Higher equity markets (Dow Jones up 236 points), and higher crude oil (April futures up $1.44) provided support for a modest gain in the grain markets today. Corn and soybean basis both remain firm on limited producer selling. The investment and hedge funds have a neutral position in corn, long 31,000 contracts of soybean futures and short 18,000 contracts of Chicago wheat contracts. Corn and Soybean insurance prices are being calculated in February with Dec 09 futures avg currently at $4.05 and Nov 09 soybean futures avg at $8.91.