Wednesday's action by the Federal Reserve that infused an extra $30 billion dollars into the stimulus package has really weakened the dollar and strengthened the commodities by bringing renewed noncommercial buying to the grain market. The other sectors of the commodities markets also had a good day with gold up $70.00 an oz and crude oil up over $3.00 dollars a barrel. The market opened stronger than overnight with corn up 15, beans up 35 and wheat up 30 on the open. Shortly after the open cash selling of grain came into the market and drove prices down to the low of the day. The rest of day was lackluster with soybeans finishing up 25 corn up 8 and wheat up 25. Even though the weekly export sales were considered bearish the market shook the news off and trended higher. Seasonally this is usually a prime time for a pre-planting rally couple that up with some noncommercial demand and this market could have some potential. Having said that remember there is a lot of old crop corn and beans sitting in farmer bins waiting for a home. Basis levels were softer today by 2 to 3 cents which can be expected by the rally.
Don't forget our breakfast meeting on Wednesday March 25th at Maria's restaurant in Morris. Anyone wishing to come please call one of our locations and we will get you registered.
Chuck Peterson
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