Corn was under pressure from the open and traded lower all day in light volume closing down 7 cents. Funds sold an estimated 8000 contracts today and have sold an est. 18,000 contracts this week. Weather forecasts are maintaining no ridge of hot dry for the next 2 weeks. Large amounts of moisture have been reported in S Iowa, N Missouri and southern half of Illinois over the last 48 hrs. Poor ethanol margins, poor quality, and large producer selling since July 1st have all weighed on corn basis especially the Illinois River system. Currently at Morris there is 33 cents of carry built in from nearby to Dec 1st!
Soybeans made their daily low early on and bounced back modestly to close 3 cents higher. Funds were actually net buyers as the USDA announced another 115,000 MT of new crop beans sold to China. Soybean basis has remained firm with exports continuing to be loaded out and old crop stocks being fairly tight. We are getting to that time of year when end users will be counting down the days until new crop and trying to guess when they can break the basis and premium they are paying for old crop.
Scott Meyer
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