Weekly Market Report August 17, 2008

August 15, 2008

Written by:

Chad Faller

Prairie State Bank & Trust

Virden, IL

www.PSBank.net

The wake trailing the Tuesday's USDA Crop Report may not have been as large as the wake trailing U.S. gold medal swimmer Michael Phelps, but the effects are certainly weighing on the minds of traders and farmers alike!  An increase corn yield of 6.6 bpa pushed the expected production to 12.288 billion bushels or 155.0 bpa.  Ending stock estimates were up 300 million bushels.  Although soybeans acres increased by 1.2 million, the yield estimates dropped 1.1 bpa to a level of 40.5 bpa, with ending stocks slipping 5 million bushels.  Most of the speculators liquidated long contracts before report came out, but it still provided for an interesting trade week.  Nearby corn futures finished Friday down $.28 and nearby soybean futures off $.53-$.55.  Likewise, Friday's lower crude prices and higher Dollar valuation certainly didn't help the markets.

We're actually seeing a dip in some of the interest rates, mainly short-term rates.  If you are a potential borrower with a project or an acquisition coming up, you may want to think about solidifying that low finance rate.  The inflation numbers certainly don't look favorable to a borrower's ability to keep these rates low.

On a much lighter note, it is just 64 days and counting until opening day!  Hopefully everyone has repaired any levy issues from the massive spring rains and are seeing a good stand in the feed plots.  Once again the USFWS Service Regulations Committee approved another 60-day duck season in Illinois.  Below is a brief glimpse of the season dates:

Illinois Duck Seasons - 2008/2009

North Zone - Saturday, Oct. 18 - Tuesday, Dec. 16

Central Zone - Saturday, Oct. 25 - Tuesday, Dec. 23

South Zone - Thursday, Nov. 27 - Sunday, Jan. 25

Illinois Canada Goose Season - 2008/2009

North Zone (85 days) - Saturday, Oct. 18 - Saturday, Jan. 10

Central Zone (85 days) - Saturday, Oct. 25 - Sunday, Nov. 9 and Monday, Nov 24 - Saturday, Jan. 31

South Zone (66 days) - Thursday, Nov. 27 - Saturday, Jan. 31

For more detailed information on seasons, bag limits, etc. click on the ILDNR link:

http://www.dnr.state.il.us/pubaffairs/2008/August/2008.htm

Check back next week for a few pictures of the Montgomery County buck caught on the trail camera.  He's young and still growing!