Weekly Grain Market Comments

If we can assist your operations with a grain market supply/demand inquiry, please contact:

Edgar Hicks

402.884.0066 x111

Weekly Market Comments: 5/26/10

Is it Time to (Temporarily) Abandon Lower Corn Price Expectations?

A month ago we confidently gave credence to the theory that amidst "adequate" corn supply and futures touching $3.55 (July) corn would make new lows. Wheat has made new lows. However, while corn has made a couple of attempts it is still a dime above its lowest levels and we are arriving at a period in the season where we may find more support than resistance (short term). Couple this with China and various outside financial factors that make fund money skittish and we will claim defeat and review our perspective for summer ending values.

We did not see anything bullish in last night's crop progress report, but we are entering the season for potential volatility.

Are Exports the Answer to Ethanol's 'Blend Wall'?

A few weeks ago we discussed warnings of an impending 'blend wall'. Then we quoted a respected ag economist saying there isn't one. Now reports are out of increased exports of ethanol to the Middle East. This development has to being saying something to the marketplace about price and something similar to a 'blend wall'.

We believe positions are unique to each person's risk bearing ability, marketing strategy and crop conditions, therefore we give no blanket recommendations. The risk of loss in trading commodities can be substantial, therefore carefully consider whether such trading is suitable for you in light of your financial condition.