From the floor May 27

[marketeye]

At 6:55am:

Iraq won't import any more wheat in 2010, their grain board reports. Cargill announced it sold 55,000 metric tons of corn to South Korea. On Thursday, Japan bought 131,000 metric tons of food wheat.

Mike

-------------

At 6:30am:

Early calls: Corn up 2-4 cents, soybeans up 5-7 cents, and wheat up 3-5 cents. Export sales will be reported this morning at 7:30am. Here is what the trade expects: For corn exports=850,000 to 1,350,000 metric tons (MT), soybeans at 350-750,000 MT, and wheat at 250-650,000 MT.

Trackers:

Overnight grain=Trading higher.

Crude oil=Trading $1.82 per barrel higher.

U.S. Dollar=Trading lower.

World Markets=Higher.

Wall Street=Seen opening higher as China relieves the world that its exposure to the European financial crisis is not as much as was being reported.

Note: Marketeye is getting his hands dirty today. I'll be helping with a company beautification project in Chicago. Planting trees, plants, etc. As a result, you will see limited reporting. Maybe today I could leave you with this question. Your feedback would be much appreciated. What is it that I could do for you (market coverage wise), that I'm not right now, to serve you better?

Thanks,

Mike

[jrsiajdranch]

Hey marketeye we want pics!  Actuall live proof of you gettin in the dirt! On a serious note I really appreciate your comments and posts please keep them coming always informative and worth reading. JR

[aaron4020]

Well Mike, if you would have told me to sell more grain back in January that would have been helpful. Just kidding of course! Enjoy your posts, keep up the good work!

Aaron

[jimtrader]

Yes please send us an e-mail alert about 5 minutes before a big fund begins to buy or sell. Thank you

[breakout 99]

How about putting a window on this page with the commodity prices updated automatically (or even in real time if you really want a lot of visitors) so I can just come here for "one stop shopping".

[Palouser]

There is a story about how the Variable storage (VSR) rate policy imposed by the CFTC and CME is sequestering wheat in the effort to get the higher storage ratges for grain in a potentially deliverable situation by funds who hold long positions. Supposedly this makes US wheat uncompetitive on the world market. Forget that I think much of the reasoning is laughable and promoted by the usual suspects.

No one has been able to explain the mechanics of this claim. There are many questions unanswered.

First. At what point is the variable storage being paid, by whom, and to whom. When is the grain the storage rate is being paid on assigned an owner? Or is it?

How could an owner of physical grain benefit from this policy, or can they? Is the storage rate being paid on the 'potential grain' to be delivered' or on real physical??? Just exactly who is the beneficiary of the VSR???

IF the VSR is having the claimed affect then the CFTC/CME policies would be having serious unforseen market affects.

I would much appereciate some research on this and some backup evidence from someone who really knows the subject. Not just an impression from an uninformed floor trader.

[iowastateisgreat]

Marketeye,

I read your comments every day and appreciate all the inside info that you provide. I especially like the comments and thoughts from the traders.

I always like hearing about trading strategies as well as thoughts on market direction. So the more detail you can provide on reasons for certain strategies, timing, the mechanics of the trade etc. would just be icing on the cake.

Thanks and have an enjoyable holiday weekend.