PFGBEST Grains and Oilseeds Comment

CHICAGO - Mar 10/10 - SNS -- Following is the grain and oilseed futures comment from PFGBEST Trading Corp.

PRODUCTION NEXT

                              Our weekly export inspection report came out Monday,   almost ignored as the market gets ready for the Wednesday 7:30 am Central Time USDA crop report.

                              Let's review them anyway, so we are on top of demand fundamentals.   Lowly wheat inspections were 20.4 million bushels inspected for near-term export versus 19 the week prior; 14 a year ago; and four-week average of 17.2 m.b.   Too much wheat in inventory at 981 m.b. to move off weak demand numbers like that.   Demand remains a neutral force for pricing.  

                              Corn inspections were 34 m.b., versus 42 the week prior;   43 a year ago; and four-week average of 31 m.b. year-to-date inspections are up 20 m.b.   I like the increase on the four-week average as we continue to see an increasing export market the last four weeks as Asian markets pick up buying as local neighbor China exits the export market.   Keep in mind, exports are always down the week of USDA reports as importers await fresh statistics for their near and long-term marketing strategies.

                              Bean inspections were 30.9 m.b., versus 40.4 the week prior; 31.0 a year ago; and four-week average of 38 m.b.   Of the total, China was in for 23.6 m.b., the second highest weekly purchase of the last six weeks.   It's a good number on a crop report week.

                              Tomorrow, Wednesday, March 10, 2010, the USDA releases its monthly crop report with final 2009 production numbers for corn and beans with adjustments to ending-stocks of all the grain markets.  

                              On the PFGBest.com web site, you can pull up my last Friday's report in which I give price projections that could occur for either a bullish or bearish report.   But, unless there is a surprise outside the average and range of industry expectations, we look to come in Thursday, the day after, and say 'what report?'   The market will quickly forget it, refocus on outside markets for daily direction and begin to get ready for the big report on March 31, when the government survey of farmers tells us how many acres of each grain farmers intend to plant.   The March 31 report is four times more important than Wednesday, March 10 report.

Tim Hannagan

PFGBEST Research Team

800.563.9510

thannagan@PFGBEST.com

DISCLAIMER: Futures and options trading involve substantial risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more then their original investment. In

no event should the content of this website be construed as an express of an implied promise, guarantee or implication by of from the author(s) that you will profit or that losses can or will be

limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Information provided on this website is intended solely for informative purposes and is obtained

from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. PFGBEST Research. its officers, directors, employees and brokers may in the normal course of business have positions, which may or may not agree with the opinions expressed in

this report.

Information on this page is derived from third parties and is deemed to be reliable. STAT Communications Ltd. accepts no responsibility for errors, omissions or inaccuracies in any of the material

presented on this web site. Opinions expressed on this web site are those of the respective individuals and/or institutions and do not represent the opinions of STAT Communications Ltd. and/or STAT

Publishing or its staff and/or management.