A day of consolidation on the ag trading floor as corn finished unchanged, beans up 3 cents and wheat down 5. Some pretty good local harvest progress over the last 4 days locally with the extremely cold temperatures allowing the snow to run through the combine and not melt in the process. Funds are long 228,000 contracts of corn with many traders believing they will add to that position later this week or at least the first half of this month. The next USDA production report will be out Jan 12th with many looking for a 100 million bu reduction in corn production due to weather loss and low test weights. Looking at a nearby S&D table one could say $4.20 Mar futures are overpriced with a 1.6 billion bu carryout but those looking at next year, knowing we need more corn acres than we had this year might view $4.45 Dec 10 as stable with limited downside until we get all those acres planted in a timely manor.
Soybeans were slightly higher today with basis 7-8 cents stronger as river logistics are getting "ICY". Bids down at the gulf have increased in order to cover our good export program and that has helped the nearby and Feb basis numbers. Weather in SA looks ideal in Brazil but we are actually hearing reports that Argentina is TOO WET, go figure after last years horrible drought.
Please remember to check grain bins for possible hot spots even in this cold weather.
Scott Meyer
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