Good evening blog readers. Lets talk Energy. It has been a bullish market the past few weeks in energy, with both diesel and gasoline seeing ten to fifteen cent gains. Crude has been playing the up and down game, but really holding in the $79.00-$83.00 range. Today's' energy market moved lower with the dollar trading higher and lingering concerns about credit issues in Greece. Overall this week the energy market is still showing gains with most available news pointing in a positive direction for demand and economic recovery. Looking ahead the market seems to still be in bull control, with technical traders calling for $88 short term crude. The current resistance is holding at $83.00, today's close was $82.20 with .73 losses. Thus far the bulls have diminished the fundamental data and continue to focus on the demand to come. Keep in mind it is rare to see a significant pull back as we head into the spring and summer months. If the market jumps past the $84 range, expect to see the prospect of $88 to $90 crude, causing product to follow suite; pump diesel prices in the $3.25 plus range.
It's a good time to fill the tank for spring, bio diesel products are bonding and mixing well with the break in the weather, so no time like the present. On the bio diesel note, it was brought to my attention that the $1 blenders credit for bio diesel blenders like our self, will still be without our subsidy. The previous $1 per gallon credit expired on January 1st, 2010 and while it has been passed by Congress, it has yet to find its way into the hearts of our Senators. So for now bio diesel may not have its monetary benefits previous held, but remember it is good idea to use what we grow.
Have a great rest of the week and happy March Madness to all.
Thanks for reading,
Zach Winter
Thursday, March 18, 2010
Wednesday, March 17, 2010
Wednesday March 17, 2010
Happy St. Patrick's Day! St. Patrick is thought to have lived in the early 400's. He's known as one of Ireland's patron saints who brought Christianity to the Irish. Started as a Catholic Feast Day which marks his death, St. Patrick's Day has become more of a day of parades, drinking, parties, etc. A typical day for the Irish.
Dare I say that the 'luck of the Irish' played a role in the markets today. Everything was in the green! Corn finished up 7 cents at $3.74. Soybeans were up another 14 cents and closed at $9.59. Fresh fund buying, higher outside markets are lending support to corn, beans, and wheat, and a weak dollar helped us out today as well. Weather premiums may have played a roll. Final ethanol usage should increase 100mbu but with ethanol margins struggling and a few slowdowns occurring, this is less certain.
In regards to weather, we are going to have to say a few 'Hail Mary's' of our own if we want to see this nice weather last. It looks as if 70 degree days are going to end with snow later this week. Yes, there is a possibility that snow is going to come back to the Midwest. The greatest potential of snow looks to be Iowa and the northwest corner of Illinois. But don't be surprised if we get some precip late next week.
That's the way it is,
Nathaniel Dubravec
Dare I say that the 'luck of the Irish' played a role in the markets today. Everything was in the green! Corn finished up 7 cents at $3.74. Soybeans were up another 14 cents and closed at $9.59. Fresh fund buying, higher outside markets are lending support to corn, beans, and wheat, and a weak dollar helped us out today as well. Weather premiums may have played a roll. Final ethanol usage should increase 100mbu but with ethanol margins struggling and a few slowdowns occurring, this is less certain.
In regards to weather, we are going to have to say a few 'Hail Mary's' of our own if we want to see this nice weather last. It looks as if 70 degree days are going to end with snow later this week. Yes, there is a possibility that snow is going to come back to the Midwest. The greatest potential of snow looks to be Iowa and the northwest corner of Illinois. But don't be surprised if we get some precip late next week.
That's the way it is,
Nathaniel Dubravec
Tuesday, March 16, 2010
Tuesday March 16th, 2010
A classic "Turn-Around-Tuesday" in the grain markets today led by the weaker US dollar. The S&P today reasserted it's credit rating of Greece even though there has been no official bailout from the European Union finance ministers. The news did prop up the euro against the dollar and made for stronger commodities. Ethanol margins continue to run in the RED as over supply has hurt that industry. Crude oil remains relatively high at $80/barrel and with corn near $3.50 you would think ethanol margins would be better. This ratio does lend to blending more ethanol so lets hope we can see progress made for this 15% blend.
Soybeans perked up today and closed up 15 cents as the annual Argentina port/worker strike has surfaced. So far business is as usual but tensions are always high down there at this time of year. Harvest progress in Brazil and Argentina will be slowed due to rains forecast for the remainder of the week and may give us a chance to export a few more soybeans.
With the record fall/winter precip across the Dakotas, Iowa, and much of the corn belt, it is no wonder that river flooding is rearing it's ugly head as temperatures rise. The poor people along the Red River in Fargo ND are again looking at record water levels along with agricultural and residential flooding due to the tremendous snow melt going on there. Most of Iowa and up and down the Mississippi River are also showing moderate to major flood conditions.
Scott Meyer
Soybeans perked up today and closed up 15 cents as the annual Argentina port/worker strike has surfaced. So far business is as usual but tensions are always high down there at this time of year. Harvest progress in Brazil and Argentina will be slowed due to rains forecast for the remainder of the week and may give us a chance to export a few more soybeans.
With the record fall/winter precip across the Dakotas, Iowa, and much of the corn belt, it is no wonder that river flooding is rearing it's ugly head as temperatures rise. The poor people along the Red River in Fargo ND are again looking at record water levels along with agricultural and residential flooding due to the tremendous snow melt going on there. Most of Iowa and up and down the Mississippi River are also showing moderate to major flood conditions.
Scott Meyer
Monday, March 15, 2010
Monday March 15th, 2010
If there was one word to sum the trade today it would lackluster. A firmer dollar and lower crude oil weighed on corn today, along with pressure from big supply of feed grains. Strong crush numbers out today, coupled with can you believe it shipping problems in Brazil, lead to a 4 cent higher close in soybeans. The market has found a base for prices, with concerns about wet weather potentially delaying spring field work and seedings provided underlying support. A wet spring is seen limiting corn plantings as delayed spring field work could close the door on planting corn after a wet fall. Limited fall land preparation for planting corn this year as well about 5% of U.S. 2009 crop still needing to be harvested adds to market uncertainty. The weather concerns provide some psychological strength, but its too early to get excited about weather in mid-March. The weather is keeping a floor beneath prices, but not enough to provide a rally.
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