From the floor May 18

[marketeye]

Doane marketing service has pegged U.S. 2010/2011 corn ending stocks at 1.997 billion bushels, higher than the USDA's 1.88. Separately, one trader says he is bullish soyoil, thinking the JOBS bill working its way through Congress will include a tax incentive for biodiesel. Just a few thoughts from the floor.

Mike

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[marketeye]

At the close:

The July corn futures ended 3 3/4 cents higher at $3.59 3/4.  The July soybean futures contract settled 1 1/2 cents lower at $9.39 1/2 per bushel. The July wheat futures settled 1 1/4 cents lower at $4.67 3/4. July soybean meal futures closed $0.30 per short ton lower at $273.60 per short ton. The July soyoil futures ended 6 points higher at $37.19.

In the outside markets, the NYMEX crude oil is $0.57 per barrel lower, the dollar is higher, and the Dow Jones Industrials are down 49 points.

Most of the action on the floor came from the corn options pit. One trader calls the volume huge. For the past few weeks, a Mexican hedger has been selling calls, taking off his July position. This pushed the market lower but it made its way back some.  July volatility got crushed, in the process. Other than that, crude oil sold-off and the dollar strengthened as Germany announced rules limiting "naked" trades or shorting the euro. The stronger dollar, weaker crude dropped soybeans.

Mike

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[Canuck_2]

So you would like me to tell you I still own Too Much corn. Shoulda, coulda, woulda.

Sold some at $160/t (Canadian $) last fall then price went down and I sat

Sold some more last week for $148 from commercial storage so you can see how that worked out.

And I still have too much left.

Soys were mostly sold pre harvest and that has worked OK , about 15% left just in case.

Wheat is about the same 60% sold preharvest and still have about 15% left just in case.

This year 2010 is different, not a lot sold yet of soy or wheat and no corn.

Hard to jump in with prices down from last year.

My plan, well wait and hope?

Will try to find a few little rallies to get a little more done at different times.

My marketing is perhaps slightly different from US farmers since I have to watch what the Canadian $ does.

Sometimes Chicago will move and our prices stay the same because of relationship of our $

There now I have confessed. Did well last year not so good this year BUT there is still next year.