18750 Hwy. 71 S. PO Box 108 Blomkest, MN 56216
Phone: 320-995-6119
Fax: 320-995-6110
Update
FREE PRICE LATER
Allied Grain is offering free storage on PL contracts. Under the program there will be no fee to store corn thru August 31, 2012. This program is subject to change at any time.
Grant Christianson, President
Loren Refsland, Chief of Operations
Loren Swenson, Grain Merchandiser
Todd Stanghelle, Office Manager
Mary Schemel, Bookkeeper
CORN: Corn traded lower early in the overnight session but then rallied back and comes into this morning's open 4-5 cents higher. March corn has not closed lower since last Wednesday and looks to end the week on a high note. Look for yesterday's high of $6.45 3/4 to offer the first level of resistance if corn tries to extend the gains. Early indications from the gulf are that values are holding firm from yesterday with Jan bids at +88 H and the spot market as high as +100 H. Barge freight on the ILL River has rallied 70% of tariff this week as the Midwest scrambles to meet the increased demand. Some Midwest basis values have backed off in the last 24-48 hours. Traders will also continue to watch the corn spreads for indications of direction. South Korean firm, Nonghyup Feed, bought 110K tons of US corn. February options go off the board with today's close. The table below shows $6.50 as the level with the most open interest...always interesting to watch on expiration day. China and other Asian markets will return to work on Monday following their New Year Holiday. Whether they buy into this week's rally in the rest of the world markets will be a key storyline early next week. Open interest in corn increased by more than 10,000 contracts yesterday.
SOY-COMPLEX: Soybeans continue to lag the corn and wheat markets. They did trade both sides overnight and look to open this morning around steady. Meal and oil were slightly weaker overnight. Feed mills in Thailand bought 180K tons of Brazilian new crop soybean meal. Typically this business would go to Argentina but drought concerns changed that. Weather remains a neutral to negative influence as rains and high temps have both fallen in South America in recent weeks compared to Dec/early Jan. More rain is still called for next week. The US outside markets are marginally higher and the dollar is slightly lower as of this writing. Continued concern about Greece, Portugal and Spain is holding markets back even as the US is expected to announce Q4 GDP growth of 3%. (It came in at 2.8% growth.) Commodities and equities have also been generally supported since the Fed's announcement and Dr. Bernanke's comments earlier in the week (see chart below). Open interest in beans increased by about 1,550 contracts yesterday.
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| CORN (May 12) 647\'4s +7\'4 
02:54