Monday March 15th, 2010

If there was one word to sum the trade today it would lackluster. A firmer dollar and lower crude oil weighed on corn today, along with pressure from big supply of feed grains. Strong crush numbers out today, coupled with can you believe it shipping problems in Brazil, lead to a 4 cent higher close in soybeans. The market has found a base for prices, with concerns about wet weather potentially delaying spring field work and seedings provided underlying support. A wet spring is seen limiting corn plantings as delayed spring field work could close the door on planting corn after a wet fall. Limited fall land preparation for planting corn this year as well about 5% of U.S. 2009 crop still needing to be harvested adds to market uncertainty. The weather concerns provide some psychological strength, but its too early to get excited about weather in mid-March. The weather is keeping a floor beneath prices, but not enough to provide a rally.