Corn ended lower in a see-saw session, as the market tracked volatile wheat prices. There was little fresh news for the corn market to digest, as weather for the crop remains mostly benign. Weather forecasts are showing less extreme heat. The market swung between gains and losses, and ended lower as the wheat market stumbled into the close. The market is currently awaiting Thursday's supply and demand report from Uncle Sam. Weekly crop progress report shows corn at 71% good to excellent, 97% silking, 52% dough, and 14% dented.
Soybeans ended mixed, with nearby contracts retreating on a combination of spillover weakness from wheat, the unwinding of old/new crop spreads and farmer selling. The weakness in the nearby contracts show farmers are taking advantage of rallies to clean out remaining old crop stocks. Deferred month futures contracts representing crops to be harvested in autumn backpedaled from early session highs, but ended higher on a steady dose of export demand from China, and ongoing concerns about crops moving through their critical growth stage. However, favorable near term Midwest crop weather managed to take some edge off prices.
Monday, August 9, 2010
Tuesday, August 3, 2010
Tuesday August 3, 2010
Good afternoon bloggers. Today corn finished down UNCH to -3 cents. Fall corn closed UNCH @ $4.04. Beans were up UNCH to +9 cents. Fall beans closed +8 cents @ $10.18. Wheat closed down -14 cents at $7.10. After last night's performance, we were unsure how the market was going to open today. Corn seemed to jump all over the board for most the day and unfortunately closed down. Beans were on positive ground for most of the day and wheat closed down. Thankfully wheat's poor performance didn't pull corn or beans down too much today.
The market appears to be driven by Black Sea area drought scares in Russia. This bullish news seemed to encourage speculators to pour more than $10 billion into corn, beans, and wheat. This is why the market has flourished in recent weeks. However fund players seem to be standing our their largest combined net long position since the first half of 2008. Fund buyers are noticing that chart patterns are looking increasingly tired. Some analysts say this is because the rally we have witness is based completely on fear, emotion, and momentum.
USDA crop report came out today and has corn pegged at 71% good/excellent condition. Beans are at 66% good/excellent condition. Weather in the Midwest seems to be good overall. There are some dry areas and wet areas, but overall producers' crop are looking good. Our Canadian brethren recently went through a harsh string of storms which brought hail and strong winds. This wiped out crops in parts of central Manitoba.
Construction in Morris is going well. The scale has been taken apart. Concrete has been ripped up around the scale and office area. Crews are working to pour more concrete on the west side of the elevator and the scale house has been gutted. Our dump shed has also been demolished and a new one will stand in it's place.
Stay classy Illinois,
Nathaniel Dubravec
The market appears to be driven by Black Sea area drought scares in Russia. This bullish news seemed to encourage speculators to pour more than $10 billion into corn, beans, and wheat. This is why the market has flourished in recent weeks. However fund players seem to be standing our their largest combined net long position since the first half of 2008. Fund buyers are noticing that chart patterns are looking increasingly tired. Some analysts say this is because the rally we have witness is based completely on fear, emotion, and momentum.
USDA crop report came out today and has corn pegged at 71% good/excellent condition. Beans are at 66% good/excellent condition. Weather in the Midwest seems to be good overall. There are some dry areas and wet areas, but overall producers' crop are looking good. Our Canadian brethren recently went through a harsh string of storms which brought hail and strong winds. This wiped out crops in parts of central Manitoba.
Construction in Morris is going well. The scale has been taken apart. Concrete has been ripped up around the scale and office area. Crews are working to pour more concrete on the west side of the elevator and the scale house has been gutted. Our dump shed has also been demolished and a new one will stand in it's place.
Stay classy Illinois,
Nathaniel Dubravec
Wednesday, July 28, 2010
Wednesday July 28, 2010
MORRIS RIVER TERMINAL IS WILL BE CLOSED FOR GRAIN DELIVERIES BEGINNING AUGUST 2, 2010. REPAIRS AND IMPROVEMENTS ARE SCHEDULED TO LAST THE DURATION OF AUGUST.
Hello bloggers! Today corn, beans, and wheat posted impressive gains on the day
Fall corn +14 cents @ $3.91
Fall beans +12 cents @ $9.78
Wheat +20 cents @ $6.47
Corn closed the day UP +10 to +14 cents. Corn and all commodities were up on the day due to foreign weather concerns, Chinese purchases, and technical buying. Russia, Australia, Europe, and other regions of the world are still working with a drought. Fears of declining world stocks of grain definitely helped boost the market today. Russian agricultural analysts said the drought may nearly halve grain exports by Russia to 12 million tons in the 2010/11 crop year started on July 1 from 22 million tons in 2009/10.
Not only is Russia and other countries having troubles, this is coupled with growing Chinese demand. China purchased another 120K tons of beans from the US this morning and is suspected that the USDA underestimated the amount bought from Uncle Sam. China is raising more livestock and has a rapidly growing population. Their demand for grain has drastically increased and this demand is expected to be long term. Thought these are all major reasons for the markets to be up today, analysts suspect technical buying has been the main catalyst for stronger corn and bean values today.
Stay classy Illinois,
Nathaniel Dubravec
Hello bloggers! Today corn, beans, and wheat posted impressive gains on the day
Fall corn +14 cents @ $3.91
Fall beans +12 cents @ $9.78
Wheat +20 cents @ $6.47
Corn closed the day UP +10 to +14 cents. Corn and all commodities were up on the day due to foreign weather concerns, Chinese purchases, and technical buying. Russia, Australia, Europe, and other regions of the world are still working with a drought. Fears of declining world stocks of grain definitely helped boost the market today. Russian agricultural analysts said the drought may nearly halve grain exports by Russia to 12 million tons in the 2010/11 crop year started on July 1 from 22 million tons in 2009/10.
Not only is Russia and other countries having troubles, this is coupled with growing Chinese demand. China purchased another 120K tons of beans from the US this morning and is suspected that the USDA underestimated the amount bought from Uncle Sam. China is raising more livestock and has a rapidly growing population. Their demand for grain has drastically increased and this demand is expected to be long term. Thought these are all major reasons for the markets to be up today, analysts suspect technical buying has been the main catalyst for stronger corn and bean values today.
Stay classy Illinois,
Nathaniel Dubravec
Tuesday, July 27, 2010
Tuesday, July 27th, 2010
Corn and soybeans looked to stage a classic dead-cat-bounce today with corn up 4 and beans up 6 cents in the overnight trading but couldn't hold their strength in the day session. Corn closed down 1 cent with new crop beans down 1/2 cent in a day of consolidation. Fundamentally traders are playing tug-of-war with potential record US Corn and Soybeans against devastated Russian crops and below average China crops. Corn is rated at 72% G/E and the crop index is 106 vs last year's 104.5 which resulted in a record yield. Currently this is the best rated corn crop since the big one of 2004.
Corn G/E ratings
State 2009 2010
IA 80 70
NE 78 85
SD 73 76
ND 71 88
MO 59 50
KS 74 72
IL 62 65
IN 63 62
OH 72 61
MI 52 79
WI 55 79
US 70 72
Old crop corn damage has all but shut off the export system with an estimated 500 barges or 27.5 mbu of damage barges sitting on the river in New Orleans waiting for better new crop corn to blend with. The Mississippi River is also at a high enough levels after last weeks rains in IA, WI, and Northern IL to shut down 5 locks to barge traffic. It will be import for water levels to recede heading into harvest so elevators can empty out the grain already sold to the market to make room for the new crop.
Scott Meyer
Corn G/E ratings
State 2009 2010
IA 80 70
NE 78 85
SD 73 76
ND 71 88
MO 59 50
KS 74 72
IL 62 65
IN 63 62
OH 72 61
MI 52 79
WI 55 79
US 70 72
Old crop corn damage has all but shut off the export system with an estimated 500 barges or 27.5 mbu of damage barges sitting on the river in New Orleans waiting for better new crop corn to blend with. The Mississippi River is also at a high enough levels after last weeks rains in IA, WI, and Northern IL to shut down 5 locks to barge traffic. It will be import for water levels to recede heading into harvest so elevators can empty out the grain already sold to the market to make room for the new crop.
Scott Meyer
Monday, July 26, 2010
Monday July 26th, 2010
The absence of any significant weather threat to U.S. Midwest crops based on weather forecasts through mid August pressured corn futures prices Monday. Nearby September corn settled 7 1/4 cents lower at $3.64, and December corn ended 6 1/2 cents lower at $3.78 a bushel. The lack of a weather concern forced market participants to reduce risk exposure, as current weather forecasts support good crop production potential. Corn futures had previously rallied on outlooks for hot, dry weather and excessive rains in other parts of the U.S. crop belt to potentially undermine crop yield potential. However, extended weather forecasts do not pose a threat to production potential, enticing traders that previously bet on weather producing bullish price action to cover some previously bought positions. USDA weekly crop progress report showed corn at 72% good to excellent, down 1% from last week.
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