At mid-session:
Corn is trading up 11 cents, soybeans up 8, and wheat 16 cents
FARMER TIP: At this Fargo, North Dakota meeting, the economist gave farmers this tip: Develop an "Interest rate adjustment fund". Set aside money right now for a 'guaranteed' rise in interest rates. For example, if there is a 500-point increase in rates, you could see a $100,000 increase in any loan that you are paying on. This economist is very worried farmers may not be setting aside some of their current profits, for a future 'rainy-day'. He says, "I guarantee you, that 'rainy day' will arrive in the form of higher interest rates.
Mike
---------------
At 10am:
USDA announced Wednesday Private exporters reported to the USDA export sales of 227,000 metric tons of soybeans for delivery to China. Of the total 60,000 tons is for delivery in 2010/2011 marketing year and 167,000 tons is for delivery during the 2011/2012 marketing year.
Mike
-------
At the open:
The March corn futures are 5 cents higher at $6.50 1/2. The March soybean contract is 1/4 of a cent higher at $13.76. The March wheat futures are 11 cents higher at $8.49.
In the outside markets, the NYMEX crude oil is $0.03 per barrel higher, the dollar is lower, and the Dow Jones Industrials are up 35 points.
At this farmer meeting in North Dakota, a Purdue University economist says the problem with the lagging economy is a 'missing Dead Cat Bounce'. After previous recessions, the economy surged back with a 'dead cat bounce'. The housing market is the killer, he says. Without home construction, this economy will not recover. Also, he is encouraging farmers to pay attention to Gross Domestic Product (GDP). He says, "The GDP is the 'river' that fills farmers revenue cups." He says watch for Uhaul trucks on the highway. When you see more of them, you will see the economy and grain markets go even higher.
Mike
----------
At 6:45am:
Early calls: Corn up 3-5 cents, soybeans up 4-6 cents, and wheat up 7-9.
Trackers:
Overnight grain markets=Trading higher.
Crude Oil=$0.70 higher.
Dollar=Lower.
Wall Street=Seen opening higher after Pres. Obama's State of the Union speech last night included talk about improving the economy, freezing spending, and creating friendlier corporate taxes.
World Markets=Higher.
Note: Marketeye is speaking today in Fargo, North Dakota to a group of farmers. After a very late-night arrival last night, I found out this area has received about three-times as much snow as it normally gets. The snowbanks are big in Fargo. But, I love talking to farmers. So, today should be fun. I'll let you know what they say about more wheat, corn or soybean plantings, once all this snow melts.
More in a minute,
Mike
