March 23, 2009

After posting strong gains in overnight trade, both corn and soybean futures were unable to hold on to higher gain, with corn closing down 1 and soybeans finishing up only 3 cents. Soybeans reached a five week high on Monday, driven primarily by conflicting Argentina strike threats and soaring equities. Reports claiming after an early rally, volume dried up and eventually hedge pressure, which has capped the market's gains during the past week, pushed the market lower.

Planted acreage discussion is helping to keep prices firm as it remains unclear how many acres will shift out of corn to other crops. Current private estimates are calling for a reduction in corn planted acres well below last year's total of 86 million acres. The soy market continues to see support this week by a farmers' strike in Argentina.

Chris Spurlock