Market Update - 07/30/2010
What a end to the week. Overnight prices were again higher. Corn was called up 2-3 cents, beans up 5-7, and wheat up 8-10 cents. Prices started higher than the calls with a surge of fund buying on the open. December corn breached the $4.00 mark not long after the open, and November beans punched through the $10.00 mark not long after that. Wheat was again the leader, making new highs climbing more than 30 cents higher. There are still concerns over the wheat crop in Russia, and more and more people are jumping on the bandwagon. The funds were big net buyers of about 15,000 corn, 13,000 wheat, and 6000 bean contracts. Weather concerns for the South are still on traders minds. Many traders also are starting to think that corn exports could increase due to the Russian grain problems. Outside markets were mostly lower this morning on the weaker than expected GDP numbers, but came back to finish mostly higher for the day. The US Dollar closed near unchanged. Gold was up about $12/oz. Crude oil was up about 50 cents/bbl, after being down more than $1 this morning. The Dow Jones closed near unchanged. And, livestock markets were higher. Cash bean basis improved 10 cents this afternoon as no one has any beans left. Wheat basis levels under pressure all week from the big specualtive rally. Weather forecasts are a little drier for next week with temperatures above normal. Most extreme heat will stay in the South and in the Western Plains. It looks like we will have a nice warm start to August. Look for prices to continue to be volatile next week.
For the week, grains were higher. September corn was up 21 1/2 cents. December corn was up 22 1/4 cents. August beans were up 35 1/2 cents. November beans were up 23 1/2 cents. And, September wheat was up 65 1/4 cents.
For the month, grains were higher. September corn was up 30 cents. December corn was up 33 1/4 cents. August beans were up $1.21 1/2. November beans were up $1.02 1/2. And, September wheat was up $1.81 1/4 cents.
Have a good weekend!!!
Cory
