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Wednesday, November 11, 2009

Outside markets should lend support to grains

A higher start is expected this am, 5-7 wheat and beans, 2-3 corn. The $ is a little lower while crude oil and gold are higher, which should lend support to the grains this am. There isn't a lot of other news this am so we will probably continue to focus on the weather, the $ and the funds for direction today.

ADM put out 220 of the 230 bean deliveries this am, which is negative for the nearby bean spread.

Argentine grain areas will be mostly dry until early next week, when some much needed rain is forecast. However, southern Buenos Aires province, a major grain growing area, will remain mostly dry the next 7 days.

The US midwest will continue enjoying favorable harvest weather through Sunday. Some light rain is likely early next week and the 6-10 day calls for above normal rain in the southeast part of the belt but below normal in the northwest part. A similar pattern is forecast in the delta, where dry conditions are forecast through Sunday, followed by light rain early next week. Some corn and bean harvest delays are possible but rapid progress should be seen both before and after this light rain event.

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