03/10/2014

Corn down 11, Beans down 34, Wheat down 14

Crude Oil- 101.07 down 1.50

US Dollar- 79.76 up .05      

Dow- 16,418 down 34  

If you have any remaining treated beans in your trailers, CLEAN THEM OUT before mixing them with anything you plan to take to the elevator. FDA regulations strictly prohibit any treated beans to enter commercial channels. The financial exposure you expose yourself to if you do deliver beans that have been mixed could be severe.

Well I hope we are through with winter, and can move on to spring. I was listening to some farmers talk yesterday and they were expressing their concern about the amount of frost in the ground, they were saying they were concerned that it will take a long while before the frost thaws out and until it does it will hold the water on top of the soil which won’t allow it to soak into the ground, and that with record amounts of frost this year who knows then the soil will thaw enough to soak up the moisture.

Beans aren't a good topic today, closing the session down 39 pennies wasn't what most were expecting with the report out today showing carryout at .145 million bushel generally if we get much lower than .150 everyone tends to be a bit nervous. Funds were long going into this report and wouldn't you know it they sold 14K on the day which is the downfall in today’s market. Exports continue to be high. Argentine bean production was 54 million ton. Brazilian production came in at 88.5 up from the average guess of 88.1 down from the guess in Feb. of 90 million ton. While I don’t know what exactly the bean market is going to do my thoughts are this: the US continues to export a large number of beans which helps the market, funds in the past couple of weeks have been putting money into the bean market and today decided to take some profit on those long positions, do I think they will get back into the market, yes but will that be before they continue to sell off? I wish I knew. There are folks that are switching from corn to beans this year, and there are more and more people entertaining that idea because of the ground temp, moisture level so on and so forth going into planting season.

Corn, as well was a loser on the session closing down 11 pennies on the board. The same reasons play in corn as beans today, profit taking from Funds today as they sold 9,000 on the day. The report today showed 1.456 billion bushel.  Argentine production came in at 24 million ton. Brazil came in at 70 million ton. If you were to ask me what I think corn is going to do it tell you I have not a clue, I was thinking there was a chance it made a run because of all the talk about corn acres being plated to beans. The mess with Russia and Crimea will have to play out but if Russia continues to invade there is a chance we see the ports there shut down which will move the market at their biggest commodities are Wheat and corn.

On to wheat, no good news there today either closing the session down 13 pennies the market as a whole didn’t have a good day. Funds sold 2,000 on the day. Ending stocks on today’s report came out at .558 million bushel off of an average guess of .570. Exports aren’t booming by any means, you might be okay to call it “routine”. I haven’t had much time to dig into the status of Russia and Crimea but what little I have read is that the Russians are still persisting, making attempts to force Ukrainians off of Crimean bases, however there are two sides to every story the other side being that things over there are calming down which would also go hand in hand with what the wheat market did today.

Have a good night!

Ali