Daily Grain Comments

Grain futures fell sharply across the board today. December corn lost 9 1/2 cents and November soybeans lost 19 1/2 cents. Though the 8-14 day NWS outlook calls for below normal temperatures, no serious threat of frost is seen on the horizon. Start of harvest in the south with reports of good yields also pressured prices. Soybean basis continued to drop as processors and exporters declined to pay up for limited old crop supplies with new crop on the way.

Last week Illinois Governor Pat Quinn signed the Intermodal Facilities Promotion Act. This act encourages business development in several industries, including food production, along freight rail lines in the state of Illinois. As a starting point, a public-private partnership with CenterPoint Properties is established to build an intermodal terminal near Joliet. This terminal is to be operated by the Union Pacific Railroad. This could have an effect on our local grain markets if more containers become available for grain loading in our area.

US national average diesel fuel prices rose modestly in this week's DOE report making the 6th consectutive week that the national average price has gone up. Average on-highway diesel price is up about 7% over that period. Still well below year ago levels. As Zach pointed out last night, increased distillate stocks reported this week and crude oil trading lower should help put an end to this streak.

Have a great Labor Day weekend!
Go ILLINI!

Mike Etienne