April 6, 2009

Corn saw a dismal close up only a penny and soy slipped Monday amid weakness in crude oil and equities coupled with a stronger dollar. Equities began lower right out of the gate on renewed fears about the banking sector. Hedge pressure coupled with speculative profit-taking pushed prices lower after a choppy two-side start. Forecast call for wet and cold conditions through this week, with precipitations ranging up to 2 inches in Illinois and Indiana. Wet conditions continue to keep field work at a minimum through most of the corn belt. Funds long about 101,000 contracts of corn futures. Farm state senators introducing legislation for a $5 billion ethanol pipeline. Current acreage and trend yield ideas would find US corn stocks declining moderately next year. Argentina estimating soy crop production there at 39.4 mmt vs USDA last estimate at 43 mmt.

~Chris Spurlock