April 20, 2009

Grain prices skidded on Monday, dragged down by a sell-off in stocks and crude oil and pressured by the dollar hitting a one-month high. Losses in soybeans were limited by China's insatiable appetite for the oilseed, which kept prices near their six-month high. Poor soybean production in Argentina and political unrest between the government and farmers were also key to the strength in the soy market.

Cool and wet conditions early this week will limit fieldwork in the Midwest including corn plantings. Drier through midweek but then a return to wet weather especially in west and north. Rumors of numerous US banks being judged insolvent with ongoing stress test weighed on sentiment today and will be a factor until stress test details are more evident, a major factor weighing down equities.

CROP PROGRESS: CORN 5% PLANTED vs. 2% Last Week & 14% AVG

Chris Spurlock