Early calls on corn are two to three lower this morning. The USD is higher, crude is lower. Markets were lower overnight as macro markets are again negative. The JP Morgan loss of 2 to 5 billion on a bad derivative CDS trade is weighing on all markets. Beans are also dragging the grains lower. Trade is still digesting yesterday’s crop report; new crop balance tables are very bearish and old crop does not show much support, but I continue to focus on the cash markets. The Gulf market was down 10 to 15 cents the last few days, but domestic markets are all firming as producer selling is nil on the flat price break. Cash markets will still need to source old crop corn and the break in futures is giving end users pricing opportunities. It is interesting to listen to the weather report this morning, and there is no rain in the forecast for the next 6 to 10 days for the Corn Belt. Planting will get done, but now we will need to start talking about production potential if the weather pattern turns out dry.
Kyle Smith, Mike O'Dea, Ben Parks, Collin Hulse, Ingrid Gronlund