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Thursday, October 8, 2009

Higher grains start forecast

A higher start is forecast across the floor this am, around 5 cents in wheat, corn and beans. The ongoing fall in the $ is giving all commodities a boost this am with gold continuing to rally sharply, crude oil higher, etc.

Weekly export sales were good for wheat at 767,000 tonnes. Corn was slow at 522,000 tonnes, as were beans at 451,000 tonnes. The products were in line with a total of 144,000 tonnes of meal between the two crop years and a total of 55,000 tonnes of oil between the two crop years. Expect a lot of evening up and positioning today ahead of the big USDA October crop report tomorrow am.

Scattered rain fell in the US southwest winter wheat belt yesterday and more of the same is predicted today-tomorrow as well as Sun-Mon, all of which will be welcome. The delta will see more bean harvest-delaying rain the next couple of days but drier weather is forecast this weekend into early next week. The Midwest was mostly dry yesterday but rain is forecast today, especially in the east, where up to 2" could fall by tomorrow. Dry weather is forecast in most of the Midwest this weekend, along with much colder temps. A season-ending freeze is likely in the northwest part of the belt this weekend but a higher percentage of the crops there are mature than in the east, which should limit damage. The east might see freezing temps this weekend also, mainly in the northern areas, which could do some significant damage to immature corn there.

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