Three, count them 1, 2, 3 trading day closes of higher corn. The market up sharply today in line with higher equity markets, DOW up 350 pts and ethanol talk out of Washington D.C. Secretary of Ag Vilsack and House Speaker Pelosi showing support for increased ethanol blending from the current 10% to 12-13%. This increased blending while long term had a knee jerk reaction today for higher prices. With ethanol margins as skinny as they are right now, it would be hard to build the additional plants to meet this extra 2-3% blend. USDA supply and demand report out tomorrow morning at 7:30 with small adjustments being expected in corn with a higher carryout and small adjustments to soybeans with a smaller carryout expected.
Texas corn crop 20% planted with extremely dry conditions occurring across the entire state. Wet conditions around our area have shut off all navigation on the Illinois River as water levels are to push against ALL-TIME records later this evening and into tomorrow morning.
Argentina government and local producers are still trying to work out the 35% export tax on soybeans. These deteriorating discussions along with our lackluster cash price has forced basis to very strong historical values to feed China's demand.
Scott Meyer
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