Markets are called mixed to firmer this a.m. behind a firmer overnight session and mixed outside markets.
In the overnight session corn was unchanged to up a penny, KC wheat was up 3, MPLS wheat was up 2, CBOT wheat was up 3, and beans where leading us once again up about 8 cents on the old crop (new crop beans where 2 firmer).
At 9:00 outside markets are weaker then when the grain markets paused at 7:15 this a.m. with the equities slightly in the red with the DOW off 20 points, crude oil is up 75 cents a barrel which is about a dollar off of its highs, and the US dollar is back to nearly unchanged with the cash index at 79.560.
Not a lot of new news out there this a.m.; more cuts are being talked about for the South American bean crop and other logistical issues have slowed movement and brought business back to the US. It was reported that a soy ship collided with a grain loader in a Brazil Port on Monday.
We did see 116,000 mt of beans go to China which helps support us again via showing business coming this way despite harvest happening in Brazil.
Basis is a little defensive on most of the grains; we simply don’t quiet have enough export to domestic competition. Add to that the fact that most ethanol plants are running break even at best we don’t have a lot of reason to see massive competition between the two markets.
Wheat basis is even more being controlled by the domestic market as export’s just haven’t been happening for the hard wheat’s.
Don’t forget we have our annual meeting in Pierre tonight and this afternoon we have our MWC Marketing Hour Round Table meeting at 3:00; which is 30 mins earlier then normal.
Please give us a call if there is anything we can do for you.
Thanks
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