Note: Corn Products in Chicago will close at midnight Friday, February 5, 2010 and will remain closed until 5AM Wednesday, February 10, 2010. CPC is closed for truck deliveries Monday and Tuesday next week.

Elburn Coop in Ottawa will be taking corn on Monday, February 8, 2010.
Elburn Coop in Morris will be taking corn on Monday , February 8, 2010 but, call first on soybeans.

In today’s trading, grain futures finished lower across the board. Lower outside stock and crude oil markets most of the day set the tone for grains. A stronger US dollar is also pressuring commodity prices. Mar corn finished down 2 ½ today and down 5 for the week. Mar soybeans closed down just ½ today and down ½ for the week. Jul Chicago wheat futures finished 1 ¾ lower for the day and even for the week.

National average on highway diesel fuel prices dropped 5.2 cents in this weeks report marking the third weekly decline in a row. Lower crude oil prices will likely continue this trend next week.


Have a great weekend!
Mike Etienne

Thursday, February 4th, 2010

Wow, what a difference a day makes. Energy started the week at support level and took off over Monday and Tuesday with no end in sight. On Tuesday inter day trade provided annual highs with heating oil up as much .15 cents mid-day. I thought we might have seen our contract window disappear, but after today's massive energy sell off all of this weeks gains were wiped away in one session. Crude saw it's largest dip in six months, losing $3.84 to settle at $73.14. Heating oil and gas both saw .08 cent plus losses. I am glad I only write the blog once a week, everything leading up to today looked like it was going to be a massive gains week in energy.
This weeks DOE report was rather neutral with large builds in crude and medium draws in product, little market stimulation was had. The early week gains were pinned on economic recovery data coming out of the Institute for Supply Management with its index hitting 2004 highs, indicating the worlds top economies are recovering. China also released data stating its needs for foreign oil will continue towards record levels, as their economy is recovering. Of course other data has come out as the week as progressed disagreeing with early week data, such as jobless claims and a strong dollar, which has pushed the commodities market the other way. Some feel as though their is a bubble specifically in energy that needs to burst to move the market more in line with current usage. Four week demand on diesel is down 9% from last year this time and gas is down about .5%.
It has been a wild week in energy, normally after a large sell off we will see a bit of a bounce the next day as the market repositions. But, looking forward crude and product are both at the bottom of their support levels, if they close the week lower after tomorrows trade look to see crude possibly touch its December low of $68.50 in the coming weeks and some are reporting diesel could fall to its September low of $1.66. Stay tuned.... it might get interesting.
Zach Winter

Wednesday, February 3, 2010

Good afternoon bloggers! It was on this day in 1809 that the US Congress passed legislation creating the 'Illinois Teritory' which ran from southern Illinois to Wisconsin and Minnosota. It wasn't until 1818 that Illinois officially became a state.

The past two days saw commodities not following a downward trend. But three days of 'grain in the green' evaded us today. Corn finished -12 cents at $3.53 and soybeans fell 17 cents to $9.08.

The corn and bean market took another tumble following crude oil and gold. The stronger US dollar did not seem to help either. Basis levels continue to strengthen. Corn basis on the Illinois River has remained steady and New Orleans is offering +48 cents CH. Illinois River soybean basis has also strengthened this week. The The stronger U.S. dollar has been keeping beans and corn under pressure. The Gulf soybean basis is at +62 cents.

Other news is that the USDA will be issuing their monthly S&D estimate next Tuesday. Late today the EPA ruled in support for ethanol and bio-diesel production in regards to the life cycle of greenhouse gases. 'Conceptually, this is supportive for grain based biofuel production in the U.S.' China seems to be purchasing grain from the South American market. South America weather has been nothing but stellar. Though the weather is helping out S. America's crop, issues of rusts and fungi are threatening late season crop prospects.

Oskee wow wow,
Nathaniel Dubravec

Tuesday February 2nd, 2010

Well not a lot of news out of the fundamental side of the grain markets today but with the US dollar weaker and crude oil up an impressive $2.59 a barrel, all grains managed significant gains today. Corn closed up 6 cents, soybeans up 15.5, and wheat ended up 11.5. There is a lot of talk about how this year's low quality corn crop is not going to allow for carryout to stay at 1.7 billion bu. I have below made some bullets from an Ag Economist on why the low quality corn could mean the opposite of what people are thinking:

1. More corn being fed due to low quality will more than be offset this year due to record DDG feeding.
2. Estimated additional 200 mbu of corn fed due to low quality but carryout is still burdensome at 1.7 billion even 1.5 billion is too much carryout for volatile prices.
3. On export front, low quality corn will push buyers to Argentina and it will be hard to push over 2.o billion bu through export channels.
4. The market has known about poor quality now since December and corn prices have lost 70 cents from early January highs.

The above bullets are nothing more than food for thought. There will be no real grain reports of significant interest until Mar 31st. That is when the USDA will publish 2009 production results from re-surveying and publish 2010 planting intentions for corn and beans.

Scott Meyer

Monday February 1st, 2010

Light short-covering pushed corn higher on Monday, although prices stayed stuck in a 5-cent range and the market’s upside is seen as limited. Traders said the small bounce was both unsurprising and unimpressive, given the market’s sharp drop in January. They add that basis is strengthening due to farmers’ refusal to sell at the lower prices, which is preventing further sharp drops in futures prices.

Soybean futures closed at their lowest levels in nearly four months on Monday as a round of profit taking late in the trading day pushed prices lower amid expectations for a large crop in South America. Soybean futures fell 12 percent in January, while corn tumbled 14 percent during the month. Both markets have been reeling since the U.S. Department of Agriculture's Jan. 12 crop

reports showed last year's U.S. record-large corn and soy crops were even bigger than most analysts expected.