MORRIS RIVER TERMINAL IS WILL BE CLOSED FOR GRAIN DELIVERIES BEGINNING AUGUST 2, 2010. REPAIRS AND IMPROVEMENTS ARE SCHEDULED TO LAST THE DURATION OF AUGUST.
Hello bloggers! Today corn, beans, and wheat posted impressive gains on the day
Fall corn +14 cents @ $3.91
Fall beans +12 cents @ $9.78
Wheat +20 cents @ $6.47
Corn closed the day UP +10 to +14 cents. Corn and all commodities were up on the day due to foreign weather concerns, Chinese purchases, and technical buying. Russia, Australia, Europe, and other regions of the world are still working with a drought. Fears of declining world stocks of grain definitely helped boost the market today. Russian agricultural analysts said the drought may nearly halve grain exports by Russia to 12 million tons in the 2010/11 crop year started on July 1 from 22 million tons in 2009/10.
Not only is Russia and other countries having troubles, this is coupled with growing Chinese demand. China purchased another 120K tons of beans from the US this morning and is suspected that the USDA underestimated the amount bought from Uncle Sam. China is raising more livestock and has a rapidly growing population. Their demand for grain has drastically increased and this demand is expected to be long term. Thought these are all major reasons for the markets to be up today, analysts suspect technical buying has been the main catalyst for stronger corn and bean values today.
Stay classy Illinois,
Nathaniel Dubravec
Wednesday, July 28, 2010
Tuesday, July 27, 2010
Tuesday, July 27th, 2010
Corn and soybeans looked to stage a classic dead-cat-bounce today with corn up 4 and beans up 6 cents in the overnight trading but couldn't hold their strength in the day session. Corn closed down 1 cent with new crop beans down 1/2 cent in a day of consolidation. Fundamentally traders are playing tug-of-war with potential record US Corn and Soybeans against devastated Russian crops and below average China crops. Corn is rated at 72% G/E and the crop index is 106 vs last year's 104.5 which resulted in a record yield. Currently this is the best rated corn crop since the big one of 2004.
Corn G/E ratings
State 2009 2010
IA 80 70
NE 78 85
SD 73 76
ND 71 88
MO 59 50
KS 74 72
IL 62 65
IN 63 62
OH 72 61
MI 52 79
WI 55 79
US 70 72
Old crop corn damage has all but shut off the export system with an estimated 500 barges or 27.5 mbu of damage barges sitting on the river in New Orleans waiting for better new crop corn to blend with. The Mississippi River is also at a high enough levels after last weeks rains in IA, WI, and Northern IL to shut down 5 locks to barge traffic. It will be import for water levels to recede heading into harvest so elevators can empty out the grain already sold to the market to make room for the new crop.
Scott Meyer
Corn G/E ratings
State 2009 2010
IA 80 70
NE 78 85
SD 73 76
ND 71 88
MO 59 50
KS 74 72
IL 62 65
IN 63 62
OH 72 61
MI 52 79
WI 55 79
US 70 72
Old crop corn damage has all but shut off the export system with an estimated 500 barges or 27.5 mbu of damage barges sitting on the river in New Orleans waiting for better new crop corn to blend with. The Mississippi River is also at a high enough levels after last weeks rains in IA, WI, and Northern IL to shut down 5 locks to barge traffic. It will be import for water levels to recede heading into harvest so elevators can empty out the grain already sold to the market to make room for the new crop.
Scott Meyer
Monday, July 26, 2010
Monday July 26th, 2010
The absence of any significant weather threat to U.S. Midwest crops based on weather forecasts through mid August pressured corn futures prices Monday. Nearby September corn settled 7 1/4 cents lower at $3.64, and December corn ended 6 1/2 cents lower at $3.78 a bushel. The lack of a weather concern forced market participants to reduce risk exposure, as current weather forecasts support good crop production potential. Corn futures had previously rallied on outlooks for hot, dry weather and excessive rains in other parts of the U.S. crop belt to potentially undermine crop yield potential. However, extended weather forecasts do not pose a threat to production potential, enticing traders that previously bet on weather producing bullish price action to cover some previously bought positions. USDA weekly crop progress report showed corn at 72% good to excellent, down 1% from last week.
Wednesday, July 21, 2010
Wednesday July 21, 2010
***Morris River Terminal will be closed August for grain delivery due to updating the facility and new scale.***
Good afternoon bloggers! Today the market up and firm on the close.
Nearby corn +6 cents $3.80
Fall corn +6 cents $3.93
Nearby beans +3 cents $10.15
Fall beans +5 cents $9.78
Nearby wheat +11 cents $5.88
Today wheat led the charge and corn and beans followed suit. Technical buying seemed to be the 'name of the game' today and trade attempted to make up for the slip in the market the past few days. Corn and beans tried a few times to break the 5-6 cent range, but were both held to modest gains due to a very favorable weather outlook for the Corn Belt. There was a rumor circulating about the market that the Chinese purchased another 2-3 cargoes of US beans. There has been no confirmation as of yet on the purchase. The Gulf is bidding steady on beans at +95 cents over the August contract. Gulf corn is also steady at +35 cents over the July contract. Morris river corn basis has firmed a few cents as well and cash corn is $3.52.
Argentina is the number 2 corn supplier in the world following the USA. Argentina trimmed its bean planting estimates by 3%. Brazil seemed to get the memo and increased their bean estimates by 3%. Argentina also is on the list of top world wheat producers. Argentina farmers have produced less wheat than usual of the last 2 years due to the economy and weather conditions. Farmers continue to have issues in regards to Argentina wheat harvest. The USDA has US wheat production pegged at12 mil. tonnes for the 2010/11 forecast.
The Morris Terminal has been busy lately. We were taking wheat a few weeks ago and were able to complete a wheat barge. Beans and corn have been the usual as of late. Over the past few weeks, damaged grain has slowly been creeping up and we are working our very best to help producers out. Many elevators (including our river competition) have rejected loads greater than 5% damage. If you have any questions in regards to handling grain, discount schedules, or merchandising please do not hesitate to call. We will do our best to accommodate you
Stay classy Illinois,
Nathaniel Dubravec
Good afternoon bloggers! Today the market up and firm on the close.
Nearby corn +6 cents $3.80
Fall corn +6 cents $3.93
Nearby beans +3 cents $10.15
Fall beans +5 cents $9.78
Nearby wheat +11 cents $5.88
Today wheat led the charge and corn and beans followed suit. Technical buying seemed to be the 'name of the game' today and trade attempted to make up for the slip in the market the past few days. Corn and beans tried a few times to break the 5-6 cent range, but were both held to modest gains due to a very favorable weather outlook for the Corn Belt. There was a rumor circulating about the market that the Chinese purchased another 2-3 cargoes of US beans. There has been no confirmation as of yet on the purchase. The Gulf is bidding steady on beans at +95 cents over the August contract. Gulf corn is also steady at +35 cents over the July contract. Morris river corn basis has firmed a few cents as well and cash corn is $3.52.
Argentina is the number 2 corn supplier in the world following the USA. Argentina trimmed its bean planting estimates by 3%. Brazil seemed to get the memo and increased their bean estimates by 3%. Argentina also is on the list of top world wheat producers. Argentina farmers have produced less wheat than usual of the last 2 years due to the economy and weather conditions. Farmers continue to have issues in regards to Argentina wheat harvest. The USDA has US wheat production pegged at12 mil. tonnes for the 2010/11 forecast.
The Morris Terminal has been busy lately. We were taking wheat a few weeks ago and were able to complete a wheat barge. Beans and corn have been the usual as of late. Over the past few weeks, damaged grain has slowly been creeping up and we are working our very best to help producers out. Many elevators (including our river competition) have rejected loads greater than 5% damage. If you have any questions in regards to handling grain, discount schedules, or merchandising please do not hesitate to call. We will do our best to accommodate you
Stay classy Illinois,
Nathaniel Dubravec
Tuesday, July 20, 2010
Tuesday July 20th, 2010
Corn was under pressure from the open and traded lower all day in light volume closing down 7 cents. Funds sold an estimated 8000 contracts today and have sold an est. 18,000 contracts this week. Weather forecasts are maintaining no ridge of hot dry for the next 2 weeks. Large amounts of moisture have been reported in S Iowa, N Missouri and southern half of Illinois over the last 48 hrs. Poor ethanol margins, poor quality, and large producer selling since July 1st have all weighed on corn basis especially the Illinois River system. Currently at Morris there is 33 cents of carry built in from nearby to Dec 1st!
Soybeans made their daily low early on and bounced back modestly to close 3 cents higher. Funds were actually net buyers as the USDA announced another 115,000 MT of new crop beans sold to China. Soybean basis has remained firm with exports continuing to be loaded out and old crop stocks being fairly tight. We are getting to that time of year when end users will be counting down the days until new crop and trying to guess when they can break the basis and premium they are paying for old crop.
Scott Meyer
Soybeans made their daily low early on and bounced back modestly to close 3 cents higher. Funds were actually net buyers as the USDA announced another 115,000 MT of new crop beans sold to China. Soybean basis has remained firm with exports continuing to be loaded out and old crop stocks being fairly tight. We are getting to that time of year when end users will be counting down the days until new crop and trying to guess when they can break the basis and premium they are paying for old crop.
Scott Meyer
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