Note: Corn Products in Chicago will close at midnight Friday, May 21, 2010 and remain closed on Monday. They will re-open 5AM Tuesday, May 25, 2010.
Elburn Coop in Morris will be open for corn and soybeans on Monday , May 24, 2010
Elburn Coop in Ottawa will be open for corn on Monday, May 24, 2010.
In today’s trading, grain and soybean futures were mixed. Corn rebounded along with equity markets after a tumultuous week. USDA announced more export corn sales to China this morning. Export sales continue to be good but, actual shipments are lagging. Remains to be seen if we can increase the shipment pace enough this summer to make USDA’s goal for exports. Soybeans were weaker on fund selling along with lower crude oil. Soybeans were also pressured by a dryer, warmer weather forecast which is friendly for fieldwork and planting the remainder of soybeans. Rain showers continue to pop up today throughout Illinois and east. July corn finished up 7 cents to put it up 6 for the week. July soybeans closed down 3 today and down 12 ½ for the week. It should be noted that May soybean basis at our Morris river terminal has improved 14 cents since last Friday. Posted tonight at -.07 SN. July Chicago wheat futures finished 2 ¼ higher for the day to eek out a ½ cent gain for the week.
National average on highway diesel fuel prices dropped 3.3 cents in this weeks report ending a 7 week up streak. As Zach alluded to last night crude has continued to crash since this report so would expect this average to continue to drop. Stocks of distillates and crude oil remain historically high.
Have a great weekend!
Mike Etienne
Friday, May 21, 2010
Thursday, May 20, 2010
Thursday May 20th, 2010
Regarding the two causes, or over excused causes, a strong dollar and continued worry of the economic toppling of Greece and its domino affect on other European nations. The current effect of this information or lack of information, has the energy market continuing its downward tread. I am finding it difficult to actually understand what kind of economic crisis Greece is in other than mixed reports and little first hand matter of fact information being provided. The latest report has their government lowering wages and hiking taxes; (Sounds familiar, where have I heard that before?) which has in sighted 25,000 citizens to take the streets in protest. Of course this behavior is killing what tourism was still occurring, which accounts for 20+ percent of the Greece GDP; tourism also accounts for one in every five jobs in Greece.
So what does this have to do with energy prices, and how does it effect our US economy?
Well for starters Europe is our largest export market, our largest trading partner; With 20% of exports going directly to Western Europe. The US economy is not directly tied to Greece itself other than small loans and tourism, but fear the over borrowing throughout the Euro world is too far gone or over lent is the lingering problem. As the European markets tighten and possibly stagnate, this will have a ripple effect on our economy,which will most likely carry a heavy impact on fuel use, domestic and foreign.(further reduction in manufacturing and air travel) It seems to be the big picture investors are looking at as they exit the crude market for higher ground.
Crude is down 22% from its April 6th high of $86.84, settling today at $68.01. Today was the end of the June contract, tomorrow starts a new month with about a $2.00 carry to July, $69.59, down a $1.20 in overnight trade.
How about the products that matters to you:
Gasoline today followed the complex with losses of about a nickel on the futures. Gas showed draws of 300.000 bpd, with four week demand up 2.1% from this time last year. You should be paying $2.84 or so for gas in this market if your not hunt around its out there. Hint, hint.
Diesel also traded lower once again, down about four cents on the futures. Diesel saw draws this week of a million bpd, which is wildly off from expectation of 1.3 million bpd builds. Also interesting to see was the large jump in diesel demand, up 12.3% from this time last year. (four week average)
This weeks DOE report would appear at first glance to favor bullish turnabout, but Cushing, Oklahoma reported once again record inventory, causing large concern over what we are judging the market on. So while things are improving from last year,which wasn't exactly banner, inventories are still too high for investors. I look for continued volatility as we enter a new contract month of trading, we are now aways from $65 crude, but it wont take long to get back there with $2.50 wackes. If you don't need to fill your tank, don't, the prices are getting better in the short term.
Well if your still reading, sorry so winded this evening, I didn't find a ton of conversation on my cold calls today.
Good evening and thanks for reading. Feel free to respond, by clicking "comments".
Zach Winter
So what does this have to do with energy prices, and how does it effect our US economy?
Well for starters Europe is our largest export market, our largest trading partner; With 20% of exports going directly to Western Europe. The US economy is not directly tied to Greece itself other than small loans and tourism, but fear the over borrowing throughout the Euro world is too far gone or over lent is the lingering problem. As the European markets tighten and possibly stagnate, this will have a ripple effect on our economy,which will most likely carry a heavy impact on fuel use, domestic and foreign.(further reduction in manufacturing and air travel) It seems to be the big picture investors are looking at as they exit the crude market for higher ground.
Crude is down 22% from its April 6th high of $86.84, settling today at $68.01. Today was the end of the June contract, tomorrow starts a new month with about a $2.00 carry to July, $69.59, down a $1.20 in overnight trade.
How about the products that matters to you:
Gasoline today followed the complex with losses of about a nickel on the futures. Gas showed draws of 300.000 bpd, with four week demand up 2.1% from this time last year. You should be paying $2.84 or so for gas in this market if your not hunt around its out there. Hint, hint.
Diesel also traded lower once again, down about four cents on the futures. Diesel saw draws this week of a million bpd, which is wildly off from expectation of 1.3 million bpd builds. Also interesting to see was the large jump in diesel demand, up 12.3% from this time last year. (four week average)
This weeks DOE report would appear at first glance to favor bullish turnabout, but Cushing, Oklahoma reported once again record inventory, causing large concern over what we are judging the market on. So while things are improving from last year,which wasn't exactly banner, inventories are still too high for investors. I look for continued volatility as we enter a new contract month of trading, we are now aways from $65 crude, but it wont take long to get back there with $2.50 wackes. If you don't need to fill your tank, don't, the prices are getting better in the short term.
Well if your still reading, sorry so winded this evening, I didn't find a ton of conversation on my cold calls today.
Good evening and thanks for reading. Feel free to respond, by clicking "comments".
Zach Winter
Wednesday, May 19, 2010
Wednesday May 19, 2010
Fact of the day: The official state tree is the White Oak. The official state insect is the Monarch Butterfly.
Good afternoon bloggers. Today the markets were on the defense and posted modest loses on the day. Nearby corn closed down -1 cent at $3.59. Nearby beans finished down half a cent at $9.38. Nearby wheat was up +2 cents at $4.69.
Fall corn was down 1 penny at $3.77. Chinese purchases of USA corn were finally confirmed. This is the first confirmation of China's purchases since talk started weeks ago. I was hoping this would have boosted corn prices today, but that didn't seem to be the case. Warm weather may be weighing in on the price of corn. Futures fell to their lowest level in 2 weeks as forecasts for warm weather increase expectations of a bumper crop this year. 67% of this years corn crop is rated as good to excellent. Corn exports continue to be good.
Fall beans fell -8 cents at $9.06. Export sales are at 9.7 mbu. and new crop export sales are at 7.8 mbu. China still is buying our beans over South America. There is talk of Chinese buyers canceling South American soybeans and replacing them with Uncle Sam soybeans. Today's talk is that weak closings are blamed on good USA bean planting and growing weather. This weekend's heat is needed in areas and we should definitely see some growth with a few consecutive warm days.
The Illinois River has come down since earlier this week and is now forecasted at 9'6". Morris, IL area is expected to get some rain this Friday. It shouldn't pose a threat to the river rising too much, but we'll keep an eye on it. IL river basis is firm. June and July corn basis is currently at -8.5.
Stay classy Illinois,
Nathaniel Dubravec
Good afternoon bloggers. Today the markets were on the defense and posted modest loses on the day. Nearby corn closed down -1 cent at $3.59. Nearby beans finished down half a cent at $9.38. Nearby wheat was up +2 cents at $4.69.
Fall corn was down 1 penny at $3.77. Chinese purchases of USA corn were finally confirmed. This is the first confirmation of China's purchases since talk started weeks ago. I was hoping this would have boosted corn prices today, but that didn't seem to be the case. Warm weather may be weighing in on the price of corn. Futures fell to their lowest level in 2 weeks as forecasts for warm weather increase expectations of a bumper crop this year. 67% of this years corn crop is rated as good to excellent. Corn exports continue to be good.
Fall beans fell -8 cents at $9.06. Export sales are at 9.7 mbu. and new crop export sales are at 7.8 mbu. China still is buying our beans over South America. There is talk of Chinese buyers canceling South American soybeans and replacing them with Uncle Sam soybeans. Today's talk is that weak closings are blamed on good USA bean planting and growing weather. This weekend's heat is needed in areas and we should definitely see some growth with a few consecutive warm days.
The Illinois River has come down since earlier this week and is now forecasted at 9'6". Morris, IL area is expected to get some rain this Friday. It shouldn't pose a threat to the river rising too much, but we'll keep an eye on it. IL river basis is firm. June and July corn basis is currently at -8.5.
Stay classy Illinois,
Nathaniel Dubravec
Tuesday, May 18, 2010
Tuesday May 18th, 2010
A very lackluster turn-around-Tuesday as corn finished up 3.75, soybeans dn 1.5, and wheat dn 1.25. Markets were all higher on the overnight trade and early on in the day session today but didn't manage to close that well. Crude oil also saw a similar trading day as it was up $2.40 early on but ended dn $.50 on the day.
While the grain markets are continuing to find demand at these lower prices, the prospects of warmer-drier weather has all the bulls on the sideline waiting to see if this early planted crop can pop up and start growing with authority. Many areas are looking forward to some drying to allow for corn re-planting and soybean planting to start. Unless the current extended forecasts change to cooler/wetter, it looks difficult to run up prices until we get into a more critical late June/July corn pollination period.
Scott Meyer
While the grain markets are continuing to find demand at these lower prices, the prospects of warmer-drier weather has all the bulls on the sideline waiting to see if this early planted crop can pop up and start growing with authority. Many areas are looking forward to some drying to allow for corn re-planting and soybean planting to start. Unless the current extended forecasts change to cooler/wetter, it looks difficult to run up prices until we get into a more critical late June/July corn pollination period.
Scott Meyer
Monday, May 17, 2010
Monday May 17th, 2010
Corn futures stumbled Monday, settling at a 3-week low, continuing a retracement of prior gains on pressure from a stronger U.S. dollar and bearish near term crop weather. The theme was consistent across most commodity markets in reaction to lingering European economic fears. In the absence of fresh supportive news, outside markets served as the focal point for price direction, with beneficial weather for spring planting and crop development adding to lower tone. USDA pegged corn planting at 87% complete with conditions rated at 67% good to excellent, the market was looking for around 90% complete with conditions near 85% complete.
Soybeans followed along with corn as lack of news and negative outside markets sent things lower. Soybean plantings came in at 38% tonight, the market was expecting soybeans to be 45% complete tonight.
Chris Spurlock
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