Pacific Northwest Farmers Cooperative

Overnight markets were mostly firm, with the exception of corn, late. Nov beans were 6 cents higher, Dec wheat 8 cents better while corn sold off a touch to end 1 1/2 cents lower.

Outside markets initially looked as a non-event but now may be a factor on a better than expected monthly jobs report. The dollar is slightly weaker, crude was lower but has turned 50 cents higher, gold is $10 lower, coffee continues its move upward, meal and oil were firm and the S&P is now 13 points higher.

The monthly jobs report number was better than expected although the unemployment rate did increase from 9.5 to 9.6. You gotta love news that's "not as bad as forecasted."

There's very little news to set the tone for today. A Chinese firm raised their forecasted corn output from earlier estimates, which may have allowed for some profit taking as corn went into 7:15. It feels as if Dec corn is a bit reluctant to challenge $4.50 before the long weekend. We've danced around the top for three days now, creeping higher each day. We got up to 4.49 in the overnights. There is still expected to be a slug of farmer selling at the $4.50/55 level, so any surge should be met with solid resistance. The bullish attitudes, however, have lessened the amount that was initially thought to be let go around $4.50. As is evident, everyone is seemingly bullish.

Beans were suprisingly strong in the overnights. We again challenged the $10 level and held, and now are up slightly despite thinking that bean yields have a better shot at reaching the USDA's 44 bu/acre than corn does the 165 bu/acre. Consensus seems to be that the market is already pricing in a corn yield at 162ish. Next week's (the 10th) USDA yield number is highly anticipated.

There was talk of a wheat sale to be announced this morning, and seemingly talk was right. Looks like another 110.000 tonnes of HRW has been sold to Egypt. A sale of 275,000 tonnes HRW was also reported to unknown. Wheat looks to be higher once again as we continue to make up for world shortfalls.

Informa will be out this morning at 10.30(?) with their yield estimates. Anything below 161 on corn yields should garnish some attention in the trade.

Parts of IL got some needed rain last night which should help to fill out any beans that are still green.

Hurricane Earl is affecting the east coast this morning but has been downgraded to a cat. 2. There are more out in the Atlantic to be watched, however.

The 11-16 day forecast looks for a zonal flow with avg. precip and temps for the Midwest.

W. Australia is expected to have dry weather this weekend with a few scattered storms possible the first half of next week. Eastern Australian wheat areas are seeing some rain move through today.

Argentina wheat areas saw some rains yesterday with remaining rains finishing up in the next 24 hrs.

No grain markets sunday night/monday b/c of the holiday. They will start back up Monday evening for the overnights.

Have a nice weekend.