Daily Grain Comments

Note: Corn Products in Chicago will be closed for truck corn deliveries Monday and Tuesday next week. Reopening 5AM on Wednesday, September 23, 2009.

Corn and soybean futures both fell sharply at the end of today’s trading session. Noon weather maps showed no threatening temperatures through Oct 4. Dec Corn was down 11 cents for the day, losing 2 cents for the week from last Friday’s close. Nov soybeans were down 12 cents for the day but, did manage to gain 38 cents for the week. Soybean basis levels were also under pressure to end the week as reports of harvest activity increased. Rain in the Mississippi Delta and Southeastern US has hampered harvest progress in those areas.

Cattle on feed showed a 1% drop vs. this time last year. Notably fed cattle marketings in August were 4% below last August and the lowest level for any August since recording started in 1996. Ethanol and DDGS prices were reported higher this week in Illinois (and to a lesser degree in Iowa). Along with relatively good export sales, improving margins in ethanol production should help strengthen demand for corn.

On highway diesel fuel prices dropped a little more than a cent again in this week’s report. Second week in a row prices retreated. Strong distillate stocks continue to pressure prices. Crude oil traded somewhat higher this week which could lend some support going forward.

Have a great weekend!
Mike Etienne