Daily Grain Comments

Note: Corn Products in Chicago will close at midnight Friday, April 30, 2010 and re-open 5AM Monday, May 3, 2010.

Elburn Coop in Morris will be open for corn and soybeans on Monday , May 3, 2010
Elburn Coop in Ottawa will be open for corn on Monday, May 3, 2010.

The market had several interesting developments this week to factor in. In the export market, rumors of China buying US Corn were confirmed on Wednesday by the USDA reporting a sale of 115,000 metric tons by private exporters. There are further rumors that more sales to China may be forthcoming. It remains to be seen how well phytosanitary hurdles can be cleared to actually get the corn into China. Marketers are also closely following developments with the uncapped oil well in the Gulf of Mexico that is spewing 1000’s of gallons of oil per day into the Gulf. The oil slick reached some coastal areas today and almost certainly will reach more by the end of the weekend. The oil slick also threatens to shut down vessel traffic into and out of the lower Mississippi River. Any lengthy shut down there could have significant effects on our local river values and basis. Locally corn planting is practically complete and some soybean planting has commenced. A wary eye is cast to some cooler than normal temperatures forecast in early May and rain this weekend is expected to cause some field work delays. Otherwise the weather looks to be very good. Most all nearby grain bids have now moved to basis July futures.

In today’s trading, grain futures were higher across the board. This in the face of outside markets that were generally lower. Corn found support from rumors of additional Chinese purchases. Thunderstorms across the Midwest delaying fieldwork were also supportive but, it must be noted that planting progress is well above the 5 year average for this time of year. July corn finished up 6 ¼ today and up 14 ¼ for the week. July soybeans closed up 3 today but, after a dismal start on Monday & Tuesday finished the week down 11. July Chicago wheat futures finished 7 ½ higher for the day and down 2 ½ for the week after a bad start similar to soybeans.

National average on highway diesel fuel prices rose only 0.4 cents in this weeks report but, continued a 5 week up streak. Though stocks of distillates and crude oil remain historically high, the national average price for diesel is about 80 cents higher than last year at this time.

Have a great weekend!
Mike Etienne