Carry over selling from last week along with almost perfect weather has put pressure on both corn and soybean futures. Corn down 5 cents, soybeans dn 5 cents, and wheat dn 7 cents today. Outside markets were also on the defensive today with crude dn $1.95 and the DOW off 112 pts.
Crop conditions released this afternoon by the USDA concur with local excellent looking crop as Corn good/excellent up 5 pts to 76% vs 70% ly. Illinois was actually down 1 pt to 76% G/E but every other state did improve significantly.
Soybean crop planted report showed the US at 74% this week vs 53% last week and 63% last year. The average pace for this week is 75%.
The nearby basis levels have been firming for the past week with soybeans at the river tonight +.035 and corn river -.09 with Corn Products leading at +.02. Producer selling of soybeans has been very very light over the past couple of weeks. I would like to point out to those of you with old crop soybeans that the cash market is paying a premium for old vs new example Morris nearby bid of 9.355 and fall delivery 8.655, don't miss out on the premium as some day down the road those will come together. June corn contracts will keep the pipeline full for this first week but without a board rally, I would suspect corn basis to stay steady or improve slightly. With the limited selling and ever changing basis levels, it is always good to put grain offers in with your local merchandiser, you never know what might happen throughout the day.
Scott Meyer
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