Wednesday April 28, 2010

Good afternoon bloggers! Today corn was up +9 cents @ $3.57. Soybeans were unchanged @ $9.83. Wheat was down -2 cents @ $4.96.

Today's news was dominated by China buying 150mmt of corn from USA. It is significant because it is the first time China has bought corn from the USA since 2006-2007 growing season. The positive news of China purchasing corn gave the market something to react positively on. Though China has bought corn from USA, it will be another thing to see if the Chinese government will allow the corn to be unloaded come delivery time.

Previous corn planting record of 37% in 2004. This year producers are on record pace at an astonishing 50%. South Africa will start harvesting a record crop in May. March USA soybean crush was up 1.2mbu at a record 156.1mbu. Mexico absorbed 3.3mbu of soybeans. South American soybeans are slowly making it into the pipeline. 11.3mbu. soybean sales (highest since February) is a figure that has some jumping to the 'South American pipeline' conclusion.

There is talk that corn acres are switching over to bean acres. New Orleans soybean basis is +45 May. Most bids from the processor market is firm and steady. The river markets are still very competitive and still dealing with expensive barge freight rates. The weather has been very favorable as of late and will continue into Friday. Illinois and most of the Midwest will be seeing rain this weekend and warmer temperatures in the 70's. No cold weather is expected for the next 10 days.

Stay classy Illinois,
Nathaniel Dubravec