Overnight we had a slightly weaker tone to corn and wheat markets. Corn market took a breath last night and provided us with our first down tic since Thursday last week and it was a small one. Beans on the other hand showed their first sign of strength.
Yesterday we were talking in the office if you shouldn’t buy beans sell corn as that ratio was less than 1.8 basis the May contract. But the inverse in the corn market keep me gun shy.
Also heard this morning that demand for ethanol has slowed and inventories are building.. That could be the piece of news that lets the corn market rest. However, there are a large number of “smart” people predicting $8.00 plus corn futures. That’s only 34 cents away, or in these modern fast moving grain markets, one day.
Calls: steady for corn and wheat slightly higher for beans.
The market will be looking for some direction. With little news may be a sideways trade today.
Cash
Locally basis levels were a little weaker for corn yesterday. Interesting to me was the DTN basis map yesterday. Cheapest corn in the Dakota’s and Kansas… Highest basis levels Illinois, Indiana, and Ohio.
