Indiana Grain Company, LLC

Posted: 07/04/10

By: tomgrisafi

The 2010 corn growing season is shaping up nicely for most of Minnesota and North Dakota, but that hasn't necessarily been the case across the rest of the Corn Belt.

A weather market could develop if some regions of the U.S. remain too wet for good corn root development and pollination. The common market adage is, “Rain makes grain,” but too much rain makes it impossible to complete spraying and other production tasks for optimal grain production.

As of June 19, the U.S. corn crop was rated 75 percent good to excellent, 5 percent above the same timeframe in 2009. Minnesota led the nation with 93 percent good to excellent corn condition, while North Dakota was second with 88 percent good to excellent.

Iowa was 75 percent, Illinois was 69 percent and Nebraska was 78 percent good to excellent. Flooding and hailstorms reduced corn crop condition in these states, as well as in Minnesota.

The National Ag Statistics Service intended to offer its first report of corn tasseling and silking progress on June 28. On June 25, the CME Group exchange closed with the July future at $3.40 per bushel, September at $3.49 1/2, December at $3.60, March at $3.73, and May at $3.82 per bushel.

Compared with prices on June 11, the July future was down 9 cents, September was down 8 1/2 cents, and December, March and May were all down 10 cents with the close on June 25. Traders noted that dry weather was predicted for early July. The dry weather pattern was seen as a factor to take prices lower.

The USDA reported weekly corn export sales for 2009 corn of 1.123 million metric tons (44 million bushels), and suggests an upward revision in the USDA's export numbers for the 2009/10 marketing year could occur.