Tuesday July 6th, 2010

Crop conditions out today with expected declines in both Corn and Soybeans. The national corn crop rating was down 2% from 73 to 71 good/excellent while soybeans lost 1% from 67-66. Interestingly both crops are rated exactly the same as last year at this time. It looks like those of us in Northern Illinois have been dealt a better hand this year. Wheat harvest has gradually made it's way up to our area but with SRW planting acres down 60% from last year and arguably down much more than that in our area it is hard to get a handle on how fast or slow acres are coming out.

Corn started the day up 6-7 cents on bullish outside markets, a new crop bean sale to China and concerns over European wheat in France and Russia but slowly traded lower throughout the day and finished down 4-5 cents. Corn weather seems to be all over the board with western corn belt generally too wet (Des Moines IA having 200% of avg precip from May 1 - July 4), Delta way too dry (Pine Bluff AR having 52% of avg precip from May -July), and Eastern Corn belt just about right (Champaign IL having 125% of avg from May-July). The absence of extreme heat in any of the long term forecasts should provide a long window for most corn acres to pollinate regardless of their moisture situation.

Soybeans were identical to corn today in that they started 10 cents higher and slowly eroded down to close down 6 cents. Soybean ratings at 66% G/E should provide support to prices as many western belt areas have had a horrible time getting beans planted and southern Delta regions are hanging on by a thread waiting for moisture.

Please continue to monitor any old crop corn in the bin as quality issues can pop up at any time.

Scott Meyer