opening grain market comments 12-29-10

Markets are called mixed this a.m. behind mixed outside markets and a weaker overnight session.

Calls this a.m. are down 3-5 on KC and CBOT wheat, MPLS wheat unchanged to down 2, Corn is called 1-2 weaker, and beans are called down 4-8 cents.

In the overnight session MPLS wheat was off 1, CBOT wheat was down 3, KC Wheat was off 4-5, corn was unchanged, and beans where down 7.  At 9:20 outside markets have equities firmer with the DOW up 40 points, crude is off about a dime, the US dollar is weaker with the March dollar down 175 points, and European wheat is down about ½ of a percent.

Another day of not much news in the market place; dry weather in southern HRW country and dry weather in Austrialia that should allow some harvest progress are out there as is the weather in South America.  Generically speaking we have added weather premium into our markets and typically when we see weather premium added into our markets based on the weather in the US we see the premium come out at some point.

Weather looks like it could slow down movement in our area and north; perhaps this can help basis spike up a little bit

Below are yesterdays closing Country Hedging Comments