Good afternoon bloggers! Corn and soybeans saw pressure today after yesterday's gains. Both commodities were on the defensive for most of the day. Corn fell 7 cents and beans declined 14 cents. Corn finished at $3.60 and soybeans finished at $9.51. It appears that profit taking and the strengthening US dollar kept the commodity market under pressure. Natural gas and crude oil are up on the day. Ethanol margins dropped 7 cents per gallon since last week. On a positive note, corn and soybean basis remains strong on the river. River values for beans peaked last week at +14 CH0 and has backed off since then. Barge freight is remaining steady as well as CIF basis. CIF corn has firmed 2% from last week. US corn export demand is weaker than recent expectations. Demand is weakening due to increased South America competition. Reports are saying that Argentina's crop is 19+mmt. Also there is a possibility of more shipments coming out of Brazil.
Currently, old crop soybean demand remains very strong. With South America's crop looking good, look for US exports to decline in April. US soybean export shipments show a total of 41 mbu has been shipped this week. The biggest receiver, China, is importing 18.6mbu.
The Morris River Terminal has been busy taking grain and loading barges. There is talk that the Marseilles Lock is currently being repaired due to a barge hitting the lock. So far it has not hindered our ability to receive barges. The weather for much of northern Illinois is looking partly cloudy for the next week. There is a chance of snow this Saturday. It's appears weather will remain fairly quiet in the Midwest. South America weather is still looking favorable for Argentina and Brazil.
Regards,
Nathaniel Dubravec
Current Olympic Medal Count:
Germany 9
America 8
France 7
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