Good morning!

After yesterday’s sharp rally higher in our corn and soybean markets you could almost expect some profit taking today, but that really hasn’t been the case as both corn and beans hover around steady.  Yesterday’s rally could be credited to the wheat market as news of Russia implementing an export ban surfaced (dry growing season).  Now, the Russian Ag Minister is stating that there is no need for an export ban.  This has cooled the wheat market off, but I am not sure how many people actually believe it.    

Weather reports for the corn belt are fairly quiet – parts of MO, IL OH, and IN will get some rain from Isaac (1-3”) through the end of this week.  High winds from this storm do have some traders nervous – we do not need what corn is out there to be blown to the ground.  There are some hot temps across the belt nearby, but temps turn to average quickly and next week cool off even more. 

The USDA released some export sales numbers this morning, corn appears to be a touch light on new crop corn exports while beans appear to be within the range of guesses.  Both corn and soybeans experienced net cancellations of old crop exports (negative numbers) but the old crop marketing year is almost complete so this isn’t big news.  Corn rationing stories continue to surface in nearly all demand sectors.  While some areas continue to forge ahead crushing corn (as of today), the outlook looks bleak.  For example, an economist from Purdue University is projecting hog producers will be losing $60/head by January – this would be an all-time record high.

Financial markets are quiet, Bernanke will give his annual speech at the Jackson Hole economic summit tomorrow, everyone will be listening for the slightest hint of an additional economic stimulus.  Jobless claims were out this morning and came in as expected.

Currently

Corn is up 1 to 2 cents

Soybeans are steady to up 1 cent

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