Tuesday May 11th, 2010

CBOT Today:
Corn up 6.5 cents
Beans up 5.0 cents
Wheat up 0.5 cents

USDA Report Card day today:

Corn production for the 2009 crop was lowered 25 mbu on poor yields from N & S Dakota with national yield lowered to 164.7 vs 164.9 in April. The corn carryout for 09/10 was lowered from 1.899 bbu to 1.738 as a result of lower production, higher food, ethanol, and export usage. Using the projected 163.5 yield for next year and 88.8 million planted acres, carryout for 10/11 is projected at 1.818. Corn was 5 cents lower overnight on higher dollar and week stock and crude markets but did manage to finish up 6.5 cents for the day or 11.5 cents higher than overnight ended. More moisture forecast over the midwest for next 2 days and then more seasonable temps along with drier weather forecast for the weekend and first part of next week.

If corn had a slightly bullish tone from the USDA then soybeans had a very bearish report as carryout 09/10 was left unchanged at 190 mbu where some were looking for 170 range numbers. The real negative news is next year with projected carryout using 42.9 bu/ac yield and 78.1 million acres at 365 million bushels. The world bean supply and demand doesn't look any better with record production in South America but it never ceases to amaze how demand eventually pulls carryout numbers down from projections on soybeans. If you have any questions on USDA reports or daily comments in general, please feel free to give your local Elburn Coop office a call.

Thanks,

Scott Meyer