Note: Corn Products in Chicago will close at midnight Friday, February 12, 2010 and will re-open 5AM Monday, February 15, 2010.

Elburn Coop in Morris will be open for corn and soybeans on Monday , February
15, 2010.
Elburn Coop in Ottawa will be closed Monday, February 15, 2010 re-opening at 7AM Tuesday, February 16, 2010.

In Friday’s trading, grain futures finished mixed. China announced an increase in bank reserve requirements which sparked worries of slower economic growth. Export sales were in line with analysts’ estimates for corn but, disappointing for soybeans. Mar corn finished down 1 ¾ today but, up 10 for the week. Mar soybeans closed up 2 today and up 31 ½ for the week. Jul Chicago wheat futures finished 7 ¼ lower for the day but, 13 ½ for the week.

Locally, CPC announced an increase in discounts for BCFM (broken corn and foreign material) starting February 22, 2010. 5.1% to 6% BCFM will now be discounted 6 cents per bushel. 6.1% to 7% BCFM will be discounted 8 cents per bushel. The scale goes up from there. Previous discount schedule was 5 cents per each % above 5.1%. This continues recent discount adjustments at area river and rail terminals. BCFM management by elevators and producers with on farm storage will be well rewarded this year. Avoiding these increased discounts can add several cents per bushel to the bottom line.

National average on highway diesel fuel prices dropped another 1.2 cents in this weeks report marking the fourth consecutive weekly decline. Lower crude oil prices will likely continue this trend next week.

Have a great weekend!
Mike Etienne

Thursday February 11th, 2010

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

Wednesday, February 10, 2010

Good afternoon bloggers! You have probably all heard about the earthquake in the Sycamore, IL region this morning. But did you know that in 1811-1812 there were several earthquakes near St. Louis, MO which reversed the flow of the Mississippi River? Now you know.

It was a good day. Corn finished 3 cents higher at $3.61. Soybeans finished 13 cents higher at $9.37. Crude oil, natural gas, and the Dow Jones have all been in the green as well today.

Soybean basis has been strengthening on the river. Bids at the Illinois River have been significantly higher than what we have been seeing at country elevators. The Morris Terminal is bidding 6 cents over SH0. Reports from Brazil are saying farmers are 10% harvested and 26% sold. The USDA raised soybean exports 25 MBU.

The corn basis continues to firm up on the river market and most processor markets across USA. CH basis is 7 cents under at the river.

The Illinois River has been cooperating and is expected to stay around the 5-6' marker even with this week's precipitation. The weather outlook continues to be favorable for South America. Northern Illinois will begin to see temperatures hovering in the 20's and 30's for the rest of the week. Forecasters are saying snow is to be expected this weekend. Be cautious while driving as drifting snow may here and there.

Oskee wow wow,

Nathaniel Dubravec

Tuesday February 9th, 2010

USDA report today increased ethanol usage this year by 100 mbu but also decreased exports by 50 mbu as carryout decreased from 1.764 to 1.719 billion bu. Corn followed through on overnight gains and reached 7.5 cents higher before buying cooled down and finished the day up 2.5 cents. Worldwide corn stocks were down slightly from 180.2 mmt to 179.3. The Argentina corn crop was increased 2 mmt and is pegged 4 mmt above last year. Brazil corn production is at 51.0 mmt which is unchanged from last year.

USDA soybean carryout decrease 35 mbu and went from 245 - 210. Increases in exports led the way to lower soybean carryout. If traders were only looking at this, then soybeans should have been up 30-50 cents but they ended down 5 cents. The bad part for soybeans today is the SA crop keeps getting bigger with Brazil up 1 mmt to 66.0 and Argentina holding in at 53 mmt. Combined that is 119 mmt of soybeans this year vs only 89 mmt last year. This means there are 30 mmt more soybeans available or 1.1 billion bushels!

Scott Meyer

Monday February 08, 2010

Corn ended higher Monday amid short-covering ahead of Tuesday's supply-and-demand report and widespread commodity gains. March corn ended up 4 1/2 cents at $3.56 a bushel, and May corn ended up 4 1/2 cents at $3.67 1/2. Wheat and soybeans also enjoyed a bounce following recent losses, as a weaker dollar gave support to commodities in general. The gains were mostly attributed to short-covering. Prices were up by more than a dime in early trading before retreating. A couple of traders added that the CFTC commitments of traders reports were supportive, as they showed the market has rid itself of many of the longs that have been trying to flee the market since it started its slide last month.

Market participants are looking ahead to Tuesday's supply-and-demand report, which will be released by the U.S. Department of Agriculture at 8:30 a.m. EST. Analysts are expecting a slight reduction in projected 2009-10 U.S. carryout Tuesday, but fundamentally the market has little reason to rally, they said.