Monday May 10th, 2010

Corn started out the session up a nickel, but wasn't able to hold on, as the dollar pulled back its heavy losses and wheat took a nose dive as the frost/freeze over the weekend failed to due much damage to the crop. Tomorrow morning the USDA will release their monthly crop production report with estimates for both old crop and new crop carry-out. Analyst are projecting old crop carry-out between 1.72 billion bushels and 2.0 billion bushels with the average guess at 1.86 billion bushels, while new crop carryout estimates range between 1.5 and 2.4 billion bushels, with the consensus at 1.9 billion bushels. The weekly crop progress report shows corn at planted 81%, the market was looking for 75% to 85%.

Soybeans were able to finish out the day slightly better then both corn and wheat closing a whopping penny higher. Estimates for carry-out tomorrow on old crop soybeans are 180 million bushels and new crop at 340 million bushels. The weekly crop progress report shows soybeans at planted 30%, the market was looking for 35%.

Weather forecast calls for cool and wet weather in much of the central U.S. grain belt, this week. Delta grain-growing areas will have generally favorable weather for planting and crop development during the next five days. Rainfall of more than 3 inches is in store for Iowa, Missouri and Illinois, with moderate amounts elsewhere in the Midwest. Freezing weekend temperatures developed in some sections of the Corn Belt.

Chris Spurlock