It is a quiet start to the holiday shortened week. Remember, the grain markets close at noon tomorrow
and don’t open up again until 8:30am on Thursday. The markets were a little higher last night and it’s all weather – specifically the weather in Argentina. Still looks hot and dry down there in the short term, with chances of rain in the extended models. To put their weather in perspective, they are coming up on the corn pollination window right now and it’s 100 degrees outside... Nothing that can’t be fixed with a little rain, but still concerning.
Transportation issues here in the U.S. have some traders nervous about our ability to keep the export pace up in soybeans which could keep a lid on bean prices. Barge freight costs have risen thanks to low water levels and cold weather. Also the railroads have struggled this crop year to find available engines, cars and crews to run grain. This has driven the cost of rail freight to astronomical levels. Why have they struggled? Well there are a number of reasons, but a big one is that in 2009 there were 10,000 rail carloads of crude oil transported in the US, today that number is up to 400,000 carloads! Most of that (as you may know) is thanks to the Bakken wells in North Dakota.
Opening Calls
Corn steady to down 1c
Soybeans steady to up 2c
Have a great day!
Dustin Weiner
Dustin Weiner
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