FARM MARKET NEWS - SOYBEAN AND WHEAT REPORT FOR Tue, March 9
Bank of Canada Noon exchange rate was 1.0251 down 0.0035
Chicago soybeans closed slightly lower to steady.

       MAY10   HI 9.48  1/2           NOV10    HI 9.31
              LOW 9.35                        LOW 9.20
             CLOSE9.47  1/2  Down  1/2      CLOSE 9.27  1/2  Down 3 1/2

             OLD CROP                             NEW CROP
Location     Basis 1mt  2mt  3mt Adj.  $/bu  $/mt BasisAdj.  $/bu  $/mt
ELEVATORS         +MAY1+MAY1+JUL10
CK Low       -0.32                     9.16 336.39-0.73      8.55 313.98
CK High      -0.25                     9.23 338.96-0.55      8.73 320.59
CK Average   -0.27               -0.52 9.21 338.30-0.64-0.89 8.64 317.28
Essex Cty    -0.39                     9.09 333.82-0.69      8.59 315.44
Mdsx Low     -0.26                     9.22 338.59-0.76      8.52 312.87
Mdsx High    -0.20                     9.28 340.80-0.65      8.63 316.91
Mdsx Average -0.24               -0.49 9.24 339.45-0.69-0.94 8.59 315.44
Hensall      -0.28                     9.20 338.04-0.68      8.60 316.00
Bruce        -0.25                     9.23 338.96-0.65      8.63 316.91
Putnam       -0.25                     9.23 338.96-0.65      8.63 316.91
Princeton    -0.22                     9.26 340.06-0.67      8.61 316.18
Durham       -0.24                     9.24 339.33-0.70      8.58 315.08
Norfolk      -0.20                     9.28 340.80-0.56      8.72 320.22
Trenton      -0.40                     9.08 333.45-0.60      8.68 318.75
Winchester   -0.55                     8.93 327.94-0.60      8.68 318.75
North Gower  -0.45                     9.03 331.61-0.55      8.73 320.59
Huron FOB    0.00                      9.48 348.15-0.55      8.73 320.59
Kent FOB     -0.15                     9.33 342.64-0.61      8.67 318.38
Lambton FOB  -0.15                     9.33 342.64-0.61      8.67 318.38
Middlesex FOB-0.08-0.16 N/A  N/A       9.40 345.21-0.56      8.72 320.22

PROCESSORS
Hamilton     0.28 0.21  N/A  N/A       9.76 358.43-0.15      9.13 335.29
Windsor      -0.01-0.06-0.16 N/A       9.47 347.78-0.25      9.03 331.61
Winchester   -0.45                     9.03 331.61-0.50      8.78 322.43

TRANSFER
Hamilton     0.10  N/A  N/A  N/A       9.58 351.82-0.25      9.03 331.61
Pt. Stanley   N/A                                 -0.75      8.53 313.24
Sarnia       -0.33                     9.15 336.02-0.36      8.92 327.57
Owen Sound   -0.35                     9.13 335.29-0.65      8.63 316.91
Sorel QC     0.08                      9.56 351.090.13       9.41 345.57

Toledo       -0.13                     9.34 343.24-0.49      8.78 322.69


Bank of Canada Noon exchange rate was 1.0251 down 0.0035
Chicago wheat closed slightly lower.
     MAY10     HI 4.94  1/2               JUL10      HI 5.07  3/4
              LOW 4.88                              LOW 5.00  3/4
            CLOSE 4.89  1/2  Down 5 1/2           CLOSE 5.02  1/4  Down 5 1/2

Minni wheat closed slightly lower.
     MAY10     HI 5.14  1/2               SEP10      HI 5.37  1/4
              LOW 5.10                              LOW 5.32  1/4
            CLOSE 5.11  1/4  Down 2 1/4           CLOSE 5.34  3/4  Down  3/4

Wheat Board Contract Prices - DEL Terminal
Current Crop 09   Soft White(C)  Hard Red(C)    Soft Red(C)    Red Spring(M)
Basis                -0.57         -0.25           -0.78         -0.50
CAD $/bu              4.33          4.65            4.11          4.61
CAD $/tonne         159.04        170.74          151.12        169.51


Direct MarkHarvest 2009                 Harvest 2010
           DELIVERED BASIS              DELIVERED BASIS
Location   SWW(C)  HRW(C) SRW(C) HRS(M)  SWW(C)  HRW(C) SRW(C) HRS(M)
ELEVATORS
Brgssvll     N/A   -0.80   -0.90   N/A    N/A    -0.55   -0.80   N/A
London      -0.59  -0.64   -0.95   N/A   -0.38   -0.58   -0.79   N/A
Hensall     -0.50   N/A    -0.95   N/A    0.10    N/A    -0.80   N/A
Trenton      N/A    N/A     N/A    N/A    N/A     N/A    -0.65   N/A
Winchester   N/A    N/A     N/A    N/A    N/A     N/A     N/A   -0.45
Essex        N/A    N/A    -0.95   N/A    N/A     N/A    -0.84   N/A
Norwich     -0.80   N/A    -0.95   N/A    0.25    N/A    -0.80   N/A
Mt. Elgin    N/A    N/A     N/A    N/A    N/A     N/A     N/A    N/A
Kent Bridge -0.40   N/A    -0.95   N/A    0.25    N/A    -0.80   N/A
Chatham     -0.94  -0.94   -0.94   N/A   -0.83   -0.83   -0.83   N/A
Brigden     -0.94  -0.94   -0.94   N/A   -0.83   -0.83   -0.83   N/A
Palmerston   N/A   -0.59   -1.00  -0.20   N/A    -0.40   -0.78  -0.26
Mitchell    -0.80  -0.60   -0.95   N/A    0.10   -0.25   -0.80   N/A
Thornton     N/A    N/A     N/A   -0.40   N/A     N/A     N/A   -0.91
North Gower  N/A    N/A     N/A    N/A    N/A     N/A     N/A   -0.35

TERMINAL
Sarnia      -0.12  -0.33   -0.57   N/A    0.03   -0.07   -0.48   N/A
Hamilton     N/A    N/A    -0.60   N/A    N/A     N/A    -0.50   N/A
Pt. Stanley  N/A    N/A     N/A    N/A    N/A     N/A    -0.95   N/A

PROCESSORS
Toledo FM   0.95    N/A    -0.43   N/A    0.91    N/A    -0.33   N/A

Toledo Spot4.33US         4.44CA         4.44US         4.56CA

Wheat Board Contract Prices - DEL Terminal
Harvest 10        Soft White(C)  Hard Red(C)    Soft Red(C)    Red Spring(M)
Basis                -0.33          0.03           -0.64         -0.42
CAD $/bu              4.70          5.05            4.39          4.93
CAD $/tonne         172.53        185.74          161.21        181.02

(C)-Basis over the Chicago Board of Trade futures
(M)-Basis over the Minneapolis Grain Exchange

FEED GRAINS
Bayport Wheat             208.00 - 220.00
Bayport Oats              238.00
Bayport Barley            183.00
FOB Hm Soymeal            316.37 - 321.88
FOB Winch SM
DDG's FOB Chatham/Sarnia  155

DTN Closing Grain Comments    03/09 13:53
   Grains Lower, But Beans Rally Late

   Corn and wheat contracts spent most of the session on the defensive while
soybeans shrugged off early pressure.

By Darin Newsom
DTN Senior Analyst

General Comments:

   Soybeans closed 1/2 cents lower in the May and 3 1/2 cents lower in the
November. Corn closed 6 cents lower in the May and 6 cents lower in the
December. Wheat closed 5 1/2 cents lower in the May Chicago, 4 1/2 cents lower
in the May Kansas City, and 2 1/4 cents lower in the May Minneapolis. The U.S.
dollar index is 0.117 higher at 80.549. April gold is $2.90 lower at $1,121.10
while May silver is $.063 higher and May copper is $.0030 lower. The Dow Jones
Industrial Average is up 52 points at 10,604. April crude oil is $.50 lower at
$81.37. April heating oil is $.0209 lower while April RBOB gasoline is $.0339
lower and April natural gas is $0.024 lower.

DTN Midday Grain Comments     03/09 11:55

   All Grains Lower at Midday

   Grain trade is slow at midday in lower territory outside market trade is
mixed.

By David Fiala
DTN Contributing Analyst

Market Summary  

   The U.S. stock market indices are mixed at midday. The interest rate
products are higher. The dollar index is 18 higher. Energies are lightly lower.
Cattle are mixed and hogs are lower. Precious metals are steady to lower.  

GENERAL COMMENTS

CORN

   Corn trade is 4 to 5 lower at midday in slow trade. Pressure is due to
ethanol usage concerns with some negative margins this past week and some
chart-selling. The outside market influence is fairly neutral today. The
short-term trend on the charts rolled over to the downside last week, and the
May contract printed the second consecutive close below the 20-day yesterday
which is negative. Position-squaring should be the theme this afternoon ahead
of the report tomorrow morning. Early expectations are mostly neutral; most
analysts are expecting a 50-million-to-75-million-bushel drop in production
versus the 13.15-billion-bushel production number in January. The average trade
guess for the corn carryover is 1.716 billion, which is steady with the January
carryover; the range of estimates is 1.6 billion to 1.82 billion bushels. The
expectations for a steady carryover would imply that the trade is also looking
for a reduction in demand to offset the drop in supply. The updated 2009
numbers on Wednesday's report will not include data from the Dakotas, which is
one of the biggest areas of concern. This will still leave unanswered questions
following the report. Crude oil will need to hold up as the concern over
decreasing ethanol margins gains traction; Abengoa is rumored to be closing
some of its plants, which has received attention over the past 24 hours.

   SOYBEANS

   Soybean trade is 2 to 4 lower at midday due to limited fresh news and
position-squaring ahead of the report is bringing in more sellers. The Meal
trade has been lightly lower, trade is $1 lower and bean oil is down 10 at
midday. Mixed trade is likely this afternoon due to position squaring ahead of
the USDA report. Most expect increases in both crush and export usage which
should lower the carryover, but the big South American crop is sharply
discounted versus U.S. beans and should start to slow the export pace. The
average trade guess for soybean carry is 195 million bushels versus the 210
million for January. The range of estimates is 170 million to 230 million. Oil
world reported yesterday that it is expecting a major draw in world soy oil
stocks due to increased biodiesel demand. This would be as a result of the
biodiesel tax credit that is still being circulated through Congress. If
passed, it could project an increase in usage, over time, up to 400 million
pounds versus current usage of only 90 million pounds. This should continue to
support bean oil, which should limit downside in beans. It will be interesting
to see how meal reacts; the fundamentals are already less friendly in that
market, and increased soy oil production would mean bigger meal production as
well.

WHEAT

   Wheat trade is 2 to 4 lower at midday with the winter wheat losing ground to
Minneapolis. Wheat has remained a follower of the row crops. There is a lack of
fresh fundamental news that should continue to limit buying interest, but there
are still some concerns about poor winter conditions and excessive moisture
that could lead to planting delays/poor winter wheat production. The charts
have remained consolidated near the low side of their recent range; the May
Chicago contract did move below $4.90 in the overnight session and a close
below this area could promote a retest of the February low. Most of the trade
expects the Monthly USDA report this week to be neutral. The average trade
guess for the wheat carryover is 970 million bushels versus the 981 million for
January. The range of estimates is 876 million to 1 billion bushels.

   David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered Commodity Trading Advisor.


(SK)

Copyright 2010 DTN/The Progressive Farmer, A Telvent Brand. All rights reserved.

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