For all of you looking forward to the Thursday energy blog, you will have to wait until next week as Zach is out of town this week. Corn futures managed another slight gain today and finished up 1.5 cents. Traders are now looking forward to the Feb 18 Ag Forum for the first hint of new crop corn and soybean acreage. The actual acreage report is Mar 31st. The USDA has to redistribute 7 million acres of winter wheat and CRP acreage into some crop this year. Many are looking for at least 2 million more corn acres and some seeing upwards of 4 million. Corn basis continues to remain firm as the pipeline struggles with getting enough corn in this weak futures market.
Soybeans finished the day up 5.5 cents and could be further supported by tomorrow's USDA export sales number, that is if the government offices can open their doors after this week's blizzard. Harvest delays in SA are pushing our export basis numbers higher as evident by the Illinois river bean bids for nearby. It is unexpected that old crop beans will get $1.50 higher than new crop like it did last year with a 200+ million bushel old crop carryout but we currently have a 50 cent inverse.
Scott Meyer
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