USDA Report out this morning that fed the bulls in the corn pit. The 08/09 corn carryout was lowered from 1.7 bil in April to 1.6 as the USDA added back some exports and ethanol that they took away earlier in the year. The 09/2010 carryout is pegged at 1.145 billion and that is using 85 million acres at 155 bu/ac. Both the acres and yield may seem to be on the strong side given wet conditions in the entire eastern corn belt. December 2009 corn did reach levels not seen since Jan 20th as the extended carryout slides down to near 1.0 billion bushels.
Soybean USDA Report was as expected with 08/09 bean carryout at 130 million bushels vs the April 165 as China continued to buy our beans due to a lack of availability in Argentina. The 09/2010 carryout still looks comfortable at 230 million bushels but weather and delayed planting could eventually affect that situation. Beans were up a penny old crop and down 3 new crop and seem comfortable at $11 and $9 respectively.
Large amounts of rain forecast for the next 36 hours over the entire corn belt which should provide support for the balance of the week.
Scott Meyer
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