Grain Comments for 5-08-08

Grain futures posted solid gains with the corn market leading the advance.  Corn futures made new all time highs ahead of tomorrow’s monthly supply and demand report.  Buy stops hit in the December corn when a new high was made.  We did not go back and retest the high.  The wet weather added to the bullish excitement.  The trade expects bullish numbers on the report.  Watch the ending stock, yield and production numbers for direction in the corn market.

Wheat futures followed the corn action on a round of profit taking.  The weekly sales number of 492,000 metric tons exceeded the estimate.  We traded above the last recent high which will turn the short indicators to the upside.  This could be the start of a pre-harvest rally.  The Kansas Wheat Crop Tour landed in Wichita last night.  The second leg of the tour listed a 41 bushel per acre average.  This was 2.1 bushels per acre below last year.  The tour will release their 2008 Kansas wheat crop production estimate this afternoon.