Daily Grain Comments

Note: CPC-Chicago and IRE-Rochelle will both be closed for truck corn deliveries on Monday, October 5, 2009. CPC will reopen Tuesday at 5AM. IRE will not reopen until Wednesday.

Corn and wheat futures were lower and soybeans sharply lower in today’s trading. Dec corn finished down 7 cents today but, was only ½ cent lower for the week. Corn was pressured by Informa’s crop estimate that indicated 168 bu/ac yield is still possible. Nov soybeans finished 33 cents lower today and down 41 cents for the week. Informa’s estimated bean yield of 44 bu/ac sent beans lower helped by early estimates of a potential record Brazilian soybean crop that is just being planted. Dec Chicago wheat futures finished 11 ½ cents lower.

Export sales out yesterday were higher than estimates with soybean sales continuing to be exceptionally strong. Soybeans sales recorded in September this year were higher than any September in the last 20 years. Total sales commitments for this crop year that began Sep 1 are 741 million bushels. This is a record for sales recorded by this date surpassing last year’s mark of 384 million bushels which was the previous record. China’s hefty soybean purchases thus far are the reason for the increase. China accounts for over 60% of the total commitments so far at 12.1 million tons. The 2nd best buyer is Japan at just under 1 million tons. It will be interesting to see if and for how long China’s appetite for US beans continues. If large South American crops materialize they will attract Chinese buying interest quickly.

On highway diesel fuel prices dropped a little more than a cent for the third week in a row. Ample supplies and weak demand continue to keep prices in check.

Have a great weekend!
Mike Etienne