Wednesday, October 14, 2009

Corn explored the upside today, but ultimately failed to hold early gains to settle just 1-2 cents better. Early in the session, corn saw gains of 6-7 cents. The outside markets again were supportive with the DOW topping 10,000 for the first time in a year and crude oil up $1.25 to 75.40. The Dec 2009 corn contract settled at $3.83 and the Dec 2010 settled at $4.20. There has been a noticeable increase in producer movement in the last three days that may have helped keep corn from posting the stronger gains into the close.

The soybean market also finished the day marginally higher after racing to significant gains shortly after the open. They were just 1-4 cents higher at the end of the day. Gains in crude oil and meal helped to drive the early strength and let the market avoid a letdown after a disappointing industry report. For the third straight session, the Nov 2009 beans moved above $10.00 but failed to close above it. They were up just 1 cent to $9.94 at the end of the day. The Nov 2010 was also up a penny, settling at $9.76 ¼. The bean spreads were mostly weaker on the day.

Locally the chief topic today seemed to be high moisture in soybeans. We are seeing producers poke into fields throughout Northern Illinois only to find that the beans are testing in the 16% + level with one sample into Morris yesterday testing at 21%! What to do with these beans? We do know many are putting them into farm bins with some sort of low heat, we are examining the possibility of drying them in our elevators but there are problems presented there as well. Here is to hoping for dry / warm weather next week to allow us all to move to the next issue, wet corn.

Phil