Note: Corn Products in Chicago will be closed MONDAY June 21, 2010. They will re-open at 5AM , June 22, 2010.

Elburn Coop in Morris will be open for corn and soybeans on Monday, June 21, 2010.
Elburn Coop in Ottawa will be open for corn on Monday, June 21, 2010.

Export sales were generally uneventful yesterday for corn and soybeans. Corn did top the 1 million ton mark which was supportive to corn. Previously reported sale of 120,000 metric tons of corn to China showed up in the report as expected. Soybean sales were negative but, this was caused by a decrease in sales to Japan that offset the large sale last week that was questioned. Additional sales of soybean oil to China and new crop soybeans to unknown destinations (likely China) were reported today. Cattle on Feed report out today showed a 1% increase in total on cattle on feed and a 23% increase in placements from last year. Fed Cattle marketings were the lowest for the month of May since the report started in 1996. The report was about as the market expected. US EPA let it be known that they would not have a decision on increased ethanol blends is gasoline until this fall. They are waiting on test results data from the Department of Energy before making a determination. This data is expected to out around the end of September. Soybean basis continues to be strong nearby. We continue to offer free DP until October 15, 2010 for soybeans in storage or delivered to Elburn Coop facilities.

A strong storm moved through our area this afternoon with high winds and heavy rain lasting about a half hour. Have heard reports of hail and power outage but, haven’t heard any reports of significant damage thus far.

In today’s trading, corn and soybean futures were up at the close while wheat was down slightly. July corn finished up 3 ¼ for the day and up 11 ½ for the week. July soybeans closed up 9 today and up 14 for the week. July Chicago wheat futures finished 1 lower on the day but, up 21 for the week. Outside markets for equities and crude oil were slightly higher today with little new news to move them.

National average on highway diesel fuel prices were lower for the fifth week in a row dropping 1.8 cents in the latest report. Crude oil prices have recovered to the mid 70’s per barrel in recent weeks which could cause fuel prices to inch up or at least stop falling. Crude and distillate stocks rose slightly this week while gasoline stocks fell slightly. Stocks of all three products are historically high but, gasoline is moving closer to its average seasonal range where crude and diesel are not.

Have a great weekend!
Mike Etienne

Wednesday June 16, 2010

Good afternoon bloggers! Today the market found itself on positive ground again. Futures rallied today propelled by more China talk and wet weather concerns for Canada and USA. Corn was up +1-2 cents. Fall corn was up +2 cents. Soybeans were up +5-9 cents. Fall soybeans were up +9 cents. Cash corn is $3.46. Cash soybeans are $9.67.

The market the past few days has been performing well. Planting delays and issues in Canada, weak USA currency, China looking for beans, and biofuel blend talks are all playing a role. The most talk that I have heard in regards to Canadian crops has been in the news lately. Planting delays and problems with crops (especially oats) has been turning heads. The USA dollar was weaker during mid-day trading and is currently up .18%. I heard talk that earlier this week China was interested in South American soybeans due to a much better bid vs. USA Gulf market/ Pacific North West market (P.N.W.). Today there was more talk of a biofuel blend bill. Currently, reports are estimating that Congress does not have enough votes for a biofuel blend increase. May 2010 was the warmest on record.

There have been wet weather problems in wheat growing areas near Omaha, NE. Regions in northeastern China have mostly been hot and dry. There was an absence of fresh news from the outside markets today.

New Orleans bids have been firm this week. The Gulf of Mexico is bidding +45 for July corn and +63 cents for July soybeans. Though these bids are firm, the PNW has been drawing grain away from the Gulf. Earlier today the PNW was bidding +80 cents for July corn. The Illinois River appears to have crested and did not give us any trouble with loading barges today. This is the highest I remember the river being since the snow melt months ago.

Stay classy Illinois,
Nathaniel Dubravec

Tuesday, June 15th 2010

With corn futures unchanged in a day of consolidating after 3 pretty impressive days up and soybeans also uneventful at -2 cents, a trader has to get his excitement from OATS! Oat futures on the CBOT are up 80 cents in 5 days! That is a 30% increase due to very very wet conditions across the Canadian prairie. Will this have an effect on corn and soybean futures, well if today was any indication that would be a very loud NO. What this does show is that with July and Aug weather just around the corner, anything I truly believe anything can happen. With uncertain volatility in the market, it is a good idea to talk to a grain merchandiser and ask them how you can limit your down-side risk on new crop corn and beans while leaving some room for the upside.

Warmer drier weather is forecast for the next 2 weeks and almost all of the corn belt would love to see this come true.

Monday June 14th, 2010

Corn futures rallied Monday, climbing near 2-week highs on fresh export demand, Chinese weather concerns and borrowed strength from other markets. The confirmation of new sales of U.S. corn to China provided a fundamental boost for prices, with concerns that dry conditions in east-central China could raise the prospects for additional China purchases attracting buyers. USDA released their weekly Crop Progress report tonight, corn improved 1% to 77% good to excellent. Outside markets continue to be supportive with crude oil up a $1/bbl today and the dollar down again today. Concerns are starting to develop that low quality wheat this year will compete with corn and cause it to remain at lower levels in order to stay competitive.

Soybean futures climbed today, rallying to 1-month intraday highs on support from a sinking U.S. dollar, and advances in broader markets. Outside financial markets provided a spark to attract buyers, as optimistic outlooks for the global economy made some investors less risk sensitive. The July future rose to its highest point since May 14, with technical buying accelerating advances once the contract eclipsed resistance at the June 4 high. Meanwhile, underlying strength was noted from concerns about seeding problems for Canadian canola.