Market Update August 27, 2008

August 27, 2008

Written by:

Chad Faller

Prairie State Bank & Trust

Virden, IL

www.PSBank.net

In a time of indecisiveness, the commodity markets have not provided enough support to make anyone feel comfortable.....you get the feeling of riding a rollercoaster, without stepping foot in an amusement park.  We are seeing December corn with common daily trading ranges of 17 cents and November soybeans with daily trading ranges of 40 cents.  Farmers seem to have quit selling old and new crops due to the lack of market stability.  The Midwest is dealing with a below normal precipitation forecast over the next 7 days, which could impact the filling of the soybean crop.  Hurricane Gustav continues to be a threat to the Gulf's petroleum production, causing crude to trade close to the $120 level.  In the financial markets, short term rates continue to slide with 12 month bonds and 2 year bonds yielding 2.18% and 2.39% respectively.  Diligent risk assessment with a conservative game plan seems to be the prevailing attitude of the majority of investors.

The ILDNR has recently posted the initiative of a House Joint Resolution to create a Joint Task Force on Deer Population Control for Illinois.  There are mixed emotions to this announcement, but most hunters feel that it may loosen permit restrictions for resident and non-resident applications.  Albeit for financial reasons or simply to keep the insurance companies somewhat happy, I feel it is good that our legislators have identified that we have a whitetail population control issue.  As hunters, we know that overpopulation will ultimately jeopardize the quality of the Illinois Deer herd.  It will be imperative that the Illinois hunters have a say in the proposed population control measures.  Here is the link to the actual resolution:  http://www.ilga.gov/legislation/95/HJR/09500HJ0065.htm

As promised in last week's blog, here are a few pictures of a nice Illinois buck that we captured on a trail camera in Montgomery County.  Take a look at the tremendous mass and structure this buck has to offer.

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