Grain Market Activity Remains Low Amid Global Pressures

Despite some late-day gains, the Chicago Board of Trade grain futures saw little activity on Tuesday, pressured by general losses in the market. Corn, soybean, and wheat prices were lower for most of the day, causing farmer activity in the interior to dry up. Analysts point to a combination of factors, including lower basis levels in the western corn belt, concerns over China's soybean market, and a weaker dollar.

Key Takeaways:

Corn futures turned firmer late in the session, but prices were lower for most of the day, affecting farmer activity in the interior.
Soybean producers are down to their "gambling" stocks, and prices are too low to incentivize selling, according to Don Roose, president of U.S. Commodities.
Basis levels in the western corn belt are well off their winter highs, but farmers might eventually pry loose some stocks due to the approaching marketing year end.
Soybean processor bids in central Illinois were steady to firmer for soybeans and soy products, with meal and beans holding at a premium over the corresponding futures.
Traders continue to debate the potential size of the 2009 corn crop, with some using corn-planting delays as an indicator and others looking at the crop's condition report, which suggests a yield of 162 bushel per acre.
The market will remain transfixed on a weaker dollar, with potential for a correction, according to Don Roose.
Isolated thunderstorms are rumbling through southeast Missouri, with coverage expected to expand northward into southern Illinois later in the day.

Statistics:

162 bushel per acre: potential corn yield indicated by the crop's condition report.
5 bushel per acre: initial yield cut used by some traders to estimate potential corn yield.
$X.XX: dollar value, but not specified in the quote.
X%: percentage of corn crop planted, but not provided in the quote.
June 2009: date of the initial crop condition report released by the U.S. Department of Agriculture.

Sources:

Dow Jones Commodities News via Comtex, "Cash grain trade sees little activity Tuesday under general losses in grain futures."
Dow Jones Newswires, "Dow Jones Special Reports" by Debbie Carlson.
U.S. Commodities, statement by Don Roose, president.
T-Storm Weather, statement by Mike Tannura, meteorologist.