Friday March 26, 2010

Happy Friday y'all! It's on this day actor James Caan (1940), Aerosmith front man Steven Tyler (1948), and NBA player John Stockton (1962) were born.

It was refreshing to see the markets close on a positive note after yesterday's sub-par performance. Yesterday the US dollar was stronger and commodities weaker. Today the US dollar was weaker and commodities stronger. Nearby soybeans closed UP 9 cents at $9.52. Corn closed UP 1 cent on the day at $3.56. The US dollar is down as crude oil nears the $81.00 mark. The Euro is up on the day as well.

Limited AG news lead to the greenback settling the markets tone for the day.

China will ship 540,000 tons of corn and 300,000 tons of wheat to southern Chinese Providences by July. China has been suffering from a severe drought. It is estimated that losses upwards of US $3.5 billion can be blamed on the dry weather. South America still has a lingering strike. The labor strike is making Argentina officials worry that they are going to struggle as a dependable supplier. If they are right, I hope it will help out Uncle Sam and company.

It appears that everyone is hesitant and in 'limbo' until the Stock in all Positions report comes on on Wednesday. A few of the past reports have surprised everyone and it will be very interesting to see how the market responds to this Wednesday's. The report has a range for corn between 7.76-7.32bbu. A substantial spread. Soybeans are expected to fall within a 1.27-1.61bbu. spread. Also a wide spread.

The Illinois River basis has firmed up nicely this week. Nearby soybean basis is -.04. The basis has firmed 3 cents since yesterday for beans. For those of you that are looking for more of an incentive to move the rest of your corn, the Morris Terminal is offering a premium for test weights better than 54lbs. and a very competitive schedule.

Weather outlook for northern Illinois is looking great. We may get a little precipitation on Sunday. Next week is looking warm and dry with temperatures getting into the 60's later in the week. We are getting reports that fields are drying out nicely and our friends in southern Illinois are able to do some field work. Yesterday 200 acres was planted near Bloomington, IL.

Have a great weekend and stay classy Illinois,
Nathaniel Dubravec