Daily Grain Comments

Note: Elburn Coop – Morris, Elburn Coop – Ottawa and Corn Products in Chicago will be closed Monday, May 31, 2010 in observance of the Memorial Day holiday.

Corn Products in Chicago will re-open at 5AM Tuesday, June 1, 2010.
Elburn Coop in Morris will be open for corn and soybeans on Tuesday, June 1, 2010.
Elburn Coop in Ottawa will be open for corn on Tuesday, June 1, 2010.

After a rally on Thursday, grain and soybean futures slumped Friday. Prices were crippled by a combination of fundamental and outside market factors. Favorable weather forecasts for crop development in most areas pressured prices but, news that the Fitch rating agency had downgraded Spain’s credit rating broke the market to the downside. Corn and soybeans fell along with stocks and crude oil. There were no new corn sales to China announced this week and in fact some new crop sales were canceled. The domestic price of corn in China is still favorable for importing corn there so expect to continue to hear rumblings of corn exports to China.

In today’s trading, grain and soybean futures were all down hard at the close. July corn finished down 14 ¼ for the day and down 10 for the week. July soybeans closed down 14 today and down 3 for the week. July Chicago wheat futures finished 10 lower today and down 14 for the week.

National average on highway diesel fuel prices dropped for the second week in a row down 8.2 cents in this weeks report. After slumping early in the week, crude oil prices recovered mid week. Though they did give up some that gain today. Stocks of distillates and crude oil remain historically high but, look for any weather scare in the gulf to rally prices quickly. Gulf of Mexico waters are the warmest they have been at this time of year since 2004. Warm waters in the gulf are fertile grounds for spawning hurricanes.

Have a great weekend!
Mike Etienne