Indiana Grain Company, LLC

Posted: 02/08/10

By: tomgrisafi

Just as they begin to dig out from another epic snowstorm, road crews and utility workers across the mid-Atlantic states may be facing another monster storm.

Heavy snow is also expected in DC, but perhaps all the hot air from the Democratic party will cause the snow to melt before it hits the ground.

Nonetheless, we here at Indiana Grain are bracing for more than just snow. We are preparing for a crop report that could leave some traders in the cold if they're not prepared for what may very well be a busy, opportunity-rich trading session tomorrow.

Soybeans rose the most in almost a week today on speculation that U.S. crop reserves may be lower than earlier estimates. Corn and wheat also perked up a tad. One possible reason? Many are expecting a drop in crop reserves in the U.S. report due out Tuesday morning.

The Department of Agriculture may reduce its estimate of corn reserves to 1.75 billion bushels in the Feb. 9 report from a previous estimate of 1.76 billion, the Bloomberg survey showed.

Meanwhile, big crops in South America look set to get bigger as the harvest nears and should help to replenish tight global supplies of soybeans while adding to hefty corn stocks, U.S. analysts and traders said.

Stay with Indiana Grain tomorrow for more info and analysis from the USDA crop report.