Good morning!

There is support in our market today, with born corn and soybeans clocking in gains overnight.  Technically Dec corn looks like it is ironing out a short term bottom – today’s action so far could be viewed as a reversal (making new lows for the move, but now trading higher). 

The USDA came out yesterday projecting that U.S. farmers will make a record profit this year. Higher prices plus crop-insurance payments are said to outweigh losses from the drought, taking farm profits up to $122.2 billion this year (3.7% higher than last year).  In particular it is the corn and soybean farmers who are the ones with the record income (guys with a crop have high prices, guys without a crop have insurance).  The livestock farmers on the other hand (dairymen and ranchers) will see income stay flat due to rising feed costs (up 13%). 

Fundamentally in our markets to there just isn’t much to talk about.  There are a couple friendly news stories out on soybeans.  First, the American Soybean Association says that US exports to SE Asia will be up approx. 12% in 12/13.  Also there was an Ag Industry Conference in Thailand recently (yesterday?) where the idea that Asian demand will continue to rise for soybeans (and meal) was tossed around.  If this Asian soy product demand is truly continuing to increase, the bean crop in South America (planting will start next month) will be as important as it has ever been.

Currently

Corn is up 5 to 7 cents

Soybeans are up 7 to 10 cents

http://www.fccoop.com/markets/information.cfm