CME Group to Start Expanded CBOT Grain and Oilseed Trading Hours May 20

CHICAGO, May 18, 2012 /PRNewswire/ — CME Group, the world’s leading and most diverse derivatives marketplace, today announced it received CFTC approval to offer expanded electronic trading hours in its CBOT grain and oilseed futures and options beginning Sunday, May 20 for Monday, May 21 trade date. Hours will expand from the current 17 hours per day to 21 hours per day on CME Globex from 5:00 p.m. to 2:00 p.m. CT Sunday to Friday.

Products included in the expanded hours are CBOT Corn, Mini-Sized Corn, Soybeans, Mini-Sized Soybeans, Wheat, Mini-Sized Wheat, Soybean Meal, Soybean Oil, Rough Rice, Oats, and Ethanol futures and options plus all related calendar spread options and inter-commodity spread options.

Daily settlements will continue to be based on market activity at or around 1:15 p.m. CT each day. Additionally, open-outcry trading hours will continue to operate from 9:30 a.m. to 1:15 p.m. CT Monday to Friday.

As the world’s leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk.  CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate.  CME Group brings buyers and sellers together through its CME Globex® electronic trading platform and its trading facilities in New York and Chicago.  CME Group also operates CME Clearing, one of the world’s leading central counterparty clearing providers, which offers clearing and settlement services for exchange-traded contracts, as well as for over-the-counter derivatives transactions through CME ClearPort®. These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk in both listed and over-the-counter derivatives markets.

CME Group is a trademark of CME Group Inc. The Globe Logo, CME, Globex and Chicago Mercantile Exchange are trademarks of Chicago Mercantile Exchange Inc.  CBOT and the Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago, Inc.  NYMEX, New York Mercantile Exchange and ClearPort are registered trademarks of New York Mercantile Exchange, Inc.  COMEX is a trademark of Commodity Exchange, Inc.  All other trademarks are the property of their respective owners. Further information about CME Group (NASDAQ: CME) and its products can be found at www.cmegroup.com.

CME-G

SOURCE CME Group

This week funds appear to rethink

Price changes are estimates.

To review last week it was get me out from the funds perspective, this week funds appear to rethink a massive short wheat position and are all trying to exit at once, running Chicago wheat up nearly a $1.00 this week.  That, in turn, drags corn up .50 or so from lows last week, lows established on the USDA’s good and plenty May report. Mix in a little hot and potentially dry weather for Russian wheat production and issues in parts of China and you have a recipe for a rally.  What the bounce pulls to market is yet to be seen, will basis weaken, or are we really out of bullets?

Lael Weselmann, Grain Merchandiser

Strange Facts

• Louis Armstrong often stated that he was born on July 4, 1900, a date that has been noted in many biographies. Although he died in 1971, it was not until the mid-1980s that his true birth date of August 4, 1901 was discovered through the examination of baptismal records.
• Gorillas do not know how to swim.
• Facetious and abstemious contain all the vowels in the correct order.
• The Hubble telescope is so powerful that it is like pointing a beam of light at a dime that is two hundred miles away.
• Telly Savalas and Louis Armstrong died on their birthdays.

The following is a cost of production projection for the 2012 corn and bean crop. Items in bold are weekly changes depending on where the market closes. The graph that follows each table is the breakeven point based on the costs presented before the graph.

Items in bold print are weekly changes.

Items in bold print are weekly changes.

December 2012 Corn

November 2012 Beans

May 18, 2012

First and Second Resistance and Support levels as of E-CBOT close the morning of May 18, 2012.

The information contained in this letter is taken from sources which we believe to be reliable, but is not guaranteed by us as to accuracy or completeness and is sent to you for information purpose only. There is a risk of loss when trading commodity futures and options. Interstate Mills bases its recommendations solely on the judgment of Interstate Mills personal.

By

Steve Armbrust

5/16/12

 Nearby soybean meal futures are trading in the $400.00’s as both the current South American bean crop and the US bean carryout have only shrunk after the South American bean harvest.   This year’s ending US bean stocks dropped from 250 bushels down to 210 million bushels.  While the 2013 ending US bean stocks dropped down to 145 million bushels for a very low stocks to use ratio of 4.4%.  At the same time the Argentina bean production dropped from 45 million metric tonnes down to 42.50 million metric tonnes and the Brazil bean production dropped from 66 million metric tonnes down to 65 million metric tonnes.  At current futures levels there is little risk premium built in to prices since so much of our early planting season has seen favorable weather.  Consequently, many traders commonly believe that any significant weather scare could temporarily run futures price up another $50 to $75.  Processers believe bean procurement will be difficult and they are predicting high bean basis, so all of the meal basis is being offered correspondingly high.  All forward meal basis offers look to be much higher than what we have been trading the last 18 months.  If we do end up with ultimately lower meal basis it won’t happen until we are trading in the spot market.

Dried distillers grain prices are currently trading in the $205 to $215 range in central Minnesota.  Our initial thoughts were for seasonally lower prices in the spring and summer months, but with $400 plus soy prices it has brought a new level of rail and barge demand that is putting a floor in on prices.  The current container market delivered to Minneapolis is $215.  That backs up to a central Minnesota ethanol plant at a very strong $200 fob.  Additionally both the rail and barge markets are being sold for June and some July at fob values of around $205 for the ethanol plants.  As a truck buyer the problem we have, when all these forward rail and barge sales are being made, is that the ethanol plants already have much of their production sold before we come in to buy.  That keeps the ethanol plant from being pressured to sell and we end up paying more.  Unless the meal and corn markets make a significant move lower it is unlikely that we will have any chance of buying distillers below $200 any earlier than July.  Even then we will need moderating corn and meal prices and good forage availability for that to happen.  This would seem unlikely. A prudent plan would to expect summer distillers to cost $200 to $225.

The May10, 2012 USDA Supply/Demand report came with some unexpected numbers. The corn supply/demand data had only one change from the previous month.  The supply side remained unchanged. The demand saw 50 million bushels reduced from feed usage. The net result was an increase of 50 million bushel to the ending stocks number of 851 million bushels, up from 801 last month. The stocks to use ratio is now estimated at 6.7%. With stocks at these levels the average farm price is estimated at $5.95-$6.25. The May 10^th report also gave us an idea on what a possible corn yield could be for the 2012/13 crop season. The USDA is projecting a yield of 166 bushels per acre on planted acres of 95.9 million. This could be the biggest acreage number we see all year. The final Planted Acres report will be released on June 29^th at 7:30 AM. Besides planted acres weather will be the biggest yield determining factor. If the weather cooperates and we produce trend line or better yield the ending stocks will continue to grow in return driving prices lower. Soybeans on the Supply/Demand report had another reduction in ending stocks. The USDA increase the crush by 15 million bushels and exports were increased by 25 million bushel. The increase reduces the ending stocks to 210 million bushels from 250 million bushels last month. The increase in exports can be attributed to increased world demand and a smaller South American crop. The USDA estimate for the 2012/13 crop is based on 73.9 million planted acres with a yield of 43.9 bushels per acre. These numbers, combine with good demand, are projected to leave ending stocks of about 145 million bushels for the 2012/13 season. This would be a very tight stocks number. If trend line yields materialize the projected farm price is $12.00-$14.00 per bushel. Corn demand has been very good lately and basis has improved significantly because of demand. If you need to set basis on you hedge to arrive contracts this may be the time. Currently Interstate Mills has corn bids posted out through November of 2013. To view our current prices, read market information or use the DTN offer portal just check out the Interstate Mills website. The portal allows you to enter offers anytime without having to call the office. After hour orders will enter the system but will not be processed until the next business day. Producers will be contacted via text or email that the order has been accepted. To learn more about this process and other features we have to offer please contact Kyle Sommers at Interstate Mills. Kyle can be reached at 507-456-5276. If you would like to discuss your grain marketing options or have question about the website please feel free to call me anytime at 800-433-4385. I look forward to hearing from you soon.

Regards,Tim Donelan, Country Hedging Branch Office

The information contained in this presentation is taken from sources which we believe to be reliable, but is not guaranteed by us as to accuracy or completeness and is presented to you for information purposes only, there is a risk of loss when trading commodity futures and options.  Country Hedging Inc., bases its recommendations solely on the judgment of Country Hedging Inc. personnel.

CORN

2011 Crop-Options: Consider selling a July $5.60 put for 10 cents. July options expire on June 22. Call office for details.

2011 Crop-Futures: You are sold at $5.88 cash on 85% of production. Hedge 10% at $6.46 versus July futures.  July closed 5/14 at $5.83.

2012 Crop-Futures: You are hedged 35% at $5.33 versus December futures. Consider hedging 15% at $5.70 versus December. December closed 5/14 at $5.05 1/2.

2013 Crop-Futures: You are hedged 15% at $5.16. Hedge 5% at $5.99 versus December.  December closed 5/14 at $5.23.

2014 Crop-Futures: December closed 5/14 at $5.05 3/4.

2015 Crop-Futures: December closed 5/14 at $5.06 1/2.

Market movers: Corn planted is estimated at 87% versus 56% last year versus the five year average of 66%. Corn emergence is estimated at 56% versus the five year average of 28%. The Rosario Grain Exchange lowered its Argentine crop estimate to 19 mmt from 19.8 mmt. The Supply/Demand report from May 10^th increased the 2011/12 corn carryout by 50 mb to 851mb.

Trend is sideways/lower.

Export sales last week 8.8 mb versus 52.4 mb previous week.

Export inspections 26.8 mb versus 29.3 mb last week

Funds were estimated long 35,000 futures contracts versus long 58,900 last week.

BEANS

2011 Crop-Options: Consider selling a July $13.20 put and collecting about 15 cents.  July options expire on June 22^nd. Call office for details.

2011 Crop-Futures: You have priced 100% at $11.36 average cash price. July Closed 5/14 at $13.87.

2012 Crop-Futures: You are hedged 45% at $12.20 versus November. Consider hedging 10% at $13.99. Closed 5/14 at $12.94 3/4.

2013 Crop-Futures: You are hedged 15% at $10.82 versus November futures. Hedge 5% at $12.25 versus November futures. Closed 5/14 at $11.55 3/4.

2014 Crop-Futures:  November closed 5/14 at $11.45.

2015 Crop-Futures: November closed 5/14 at $11.29 1/2.

Market movers: Soybean planting is estimated at 46% complete versus 17% last year versus the five year average of 24%. Soybean emerged are estimated at 16%. The Rosario Grain Exchange lowered its Argentina production estimate to 40.9 mmt versus 43.1 in April. The Brazilian Ag Ministry raised its estimate of 2011/12 soybean production from 65.6 to 66.7 mmt. The May 10^th USDA report reduced soybean carryout for the 2011/12 season by 40 mb to 210 mb.

Trend is sideways/lower.

Export sales last week 17.1 mb versus 22.0 mb previous week.

Export inspections 20.3 mb versus 10.0 mb last week.

Funds were estimated long 183,000 future contracts versus long 204,900 last week.

For more information call Tim Donelan 800-433-4385

Item in bold print are weekly changes.

The information contained in this letter is taken from sources which we believe to be reliable, but is not guaranteed by us as to accuracy or completeness and is sent to you for information purposes only. There is a risk of loss when trading commodity futures and options. Country Hedging Inc. bases its recommendations solely on the judgment of Country Hedging Inc. personnel.

Fund money continues to head for the exits

Price changes are estimates.

Fund money continues to head for the exits as longer term fundamentals on corn weigh on the market. USDA numbers released this week confound old crop corn bulls by showing an increase of 50 million bushels to an 851 million bushel carryout.  Go figure, west coast basis, gulf basis and interior basis remain firm, although off from levels seen earlier in the week. The coming tsunami in new crop corn trumps all comers with a national average yield of 166 on 95.9 million planted acres, leading to the largest potential crop in the history of mankind, and given the market’s reaction, appears nearly in the bin.  Long liquidation continues in beans even though USDA data show a projected carryout for next year at 145 million bushels with stocks to use ratio of 4.4%. Seasonal pressures and Fund money apathy toward all things commodity remain the leading force.

Lael Weselmann, Grain Merchandiser

Strange Facts

• Leonardo da Vinci never built the inventions he designed.
• The Hudson River along Manhattan flows in either direction depending on the tide.
• Olivia Newton-John’s grandfather, Max Born, won the Nobel Prize in 1954 for his research in quantum physics.
• The two lines that connect your top lip to the bottom of your nose are known as philtrum.
• “I’ll Have Another” is the first horse to win the Kentucky Derby from the 19^th post in the 138^th runnings of the Derby.

With the today’s market volatility it becomes increasingly more difficult to stay informed about the markets. One way Interstate Mills is trying to help producers combat this problem is by using the DTN Portal linked with our website www.interstatemills.com. Through this program we are able to send e-mails and text messages to our producers to better inform them of current market situations. Lately we have also been using this feature to communicate with producers about opportunities that may present themselves throughout the marketing day. To get more information about this free service please contact me at (507)456-5276 or e-mail me at kyles@interstatemills.com.

The following is a cost of production projection for the 2012 corn and bean crop. Items in bold are weekly changes depending on where the market closes. The graph that follows each table is the breakeven point based on the costs presented before the graph.

Items in bold print are weekly changes.

Items in bold print are weekly changes.

Once again the market plays with the producer’s head by giving indication of an upside market only to come crashing back down the next trading session. Fund money in the beans turns out to be the main driver in the collapse today after the positive report yesterday. Beans will continue to struggle to gain acres from corn as the continued good planting weather moves forward. Carryout for beans dropped from 250 million to 210 million bushels in the old crop and expected carryout next year is at 145 million bushels.

Corn has been on a steady decline for quite awhile now after the projected acres planted came out. Yesterday once again showed another increase in bushels for this fall by increased bushels per acre average by 2 bushels. This projects the carry over for the 2012 crop to be at 1.881 billion bushels. A bit more than this year’s projected 851 million bushel carry over. Weather will continue to play a large role in prices as producers are able to get in the fields and the growing season pushes on.

Kyle Sommers, Grain Originator

December 2012 Corn

November 2012 Beans

May 11, 2012

First and Second Resistance and Support levels as of E-CBOT close the morning of May 11, 2012.

Old Farmers Wisdom: The Monkee’s Mike Nesmith’s Mother was the inventor of “Liquid Paper”. Liquid Paper was sold to Gillette Corp. in 1979 for $47.5 million.

The information contained in this letter is taken from sources which we believe to be reliable, but is not guaranteed by us as to accuracy or completeness and is sent to you for information purpose only. There is a risk of loss when trading commodity futures and options. Interstate Mills bases its recommendations solely on the judgment of Interstate Mills personal.

CORN

2011 Crop-Options: Consider selling a July $6.00 put for 15 cents. July options expire on June 22. Call office for details.

2011 Crop-Futures: You are sold at $5.88 cash on 85% of production. Hedge 10% at $6.96 versus July futures.  July closed 5/7 at $6.20.

2012 Crop-Futures: You are hedged 35% at $5.33 versus December futures. Consider hedging 15% at $5.70 versus December. December closed 5/7 at $5.24 3/4.

2013 Crop-Futures: You are hedged 15% at $5.16. Hedge 5% at $5.99 versus December.  December closed 5/7 at $5.33 1/4.

2014 Crop-Futures: December closed 5/7 at $5.17 1/4.

2015 Crop-Futures: December closed 5/7 at $5.21 3/4.

Market movers: The USDA estimated Chinese corn imports at 4 mmt in April, while current commitments from the US are 4.5 mmt. The unknown is the amount of sales that will be rolled to the next marketing year. On May 20^th  the grain markets will start with new expanded hours for the electronic trading.  The USDA will release the May Supply/Demand report at 7:30 AM on Thursday May 10^th. Corn planted is estimated at 71% versus 32% last year versus the five year average of 47%.

Trend is sideways/lower.

Export sales last week 52.4 mb versus 25.4 mb previous week.

Export inspections 29.3 mb versus 24.9 mb last week

Funds were estimated long 58,900 futures contracts versus long 72,600 last week.

BEANS

2011 Crop-Options: Consider selling a July $14.00 put and collecting about 16 cents.  July options expire on June 22^nd. Call office for details.

2011 Crop-Futures: You have priced 100% at $11.36 average cash price. July Closed 5/7 at $14.65 3/4.

2012 Crop-Futures: You are hedged 45% at $12.20 versus November. Consider hedging 10% at $13.99. Closed 5/7 at $13.53 1/2.

2013 Crop-Futures: You are hedged 15% at $10.82 versus November futures. Hedge 5% at $12.75 versus November futures. Closed 5/7 at $12.21.

2014 Crop-Futures:  November closed 5/7 at $11.98.

2015 Crop-Futures: November closed 5/7 at $11.76 1/2.

Market movers: The USDA is expected to lower South American production. The average trade guesses are Argentina at 42 mmt and Brazil at 65.5 mmt.  The United Nation FAO is estimating global soybean output for 2011/12 to fall 9.5% from last year. Their current estimate is 240 mmt. The USDA will release the May Supply/Demand report at 7:30 AM on Thursday May 10^th. Soybeans planted are estimated at 24% versus 6% last year versus the five year average of 11%.

Trend is sideways/lower.

Export sales last week 22.0 mb versus 34.0 mb previous week.

Export inspections 10.0 mb versus 15.5 mb last week.

Funds were estimated long 204,900 future contracts versus long 233,500 last week.

For more information call Tim Donelan 800-433-4385

Item in bold print are weekly changes.

The information contained in this letter is taken from sources which we believe to be reliable, but is not guaranteed by us as to accuracy or completeness and is sent to you for information purposes only. There is a risk of loss when trading commodity futures and options. Country Hedging Inc. bases its recommendations solely on the judgment of Country Hedging Inc. personnel.

Long liquidation by funds

Price changes are estimates.

Long liquidation by funds and computer driven seasonals continue to try and push CBOT board values lower for the week, but strong underling fundamentals keep the bears at bay.  West coast corn trades at basis numbers seldom if ever seen, and gulf numbers also push close to $1.00 over mark.  Pipeline supplies on corn remain tight.  Informa pegs new crop corn acres at 96.1 million compared to 95.9 estimated by the USDA, they also find 57.6 million bean acres compared to 55.9 by the Gov.  Every fence row, ditch and wood plot has had the visit from a man with a chain saw. A little here and a little there adds up over the whole belt.  New crop conditions continue to be near ideal so the bull spread, old vs. new continues.  The CME is also looking to extend trading hours.  Details are yet to be confirmed by the CFTC but it looks like a 22 hour trading day is in our future, good thing I gave up golf.

Lael Weselmann, Grain Merchandiser

Strange Facts

• The giant crab of Japan can be as large as 12 feet across.
• Cats in Halifax, Nova Scotia have a high probability of having six toes.
• Al Capone’s business card said he was a used furniture dealer.
• Donald Duck’s middle name is Fauntleroy.
• A cat’s jaws cannot move sideways.

With the today’s market volatility it becomes increasingly more difficult to stay informed about the markets. One way Interstate Mills is trying to help producers combat this problem is by using the DTN Portal linked with our website www.interstatemills.com. Through this program we are able to send e-mails and text messages to our producers to better inform them of current market situations. Lately we have also been using this feature to communicate with producers about opportunities that may present themselves throughout the marketing day. To get more information about this free service please contact me at (507)456-5276 or e-mail me at kyles@interstatemills.com.

The following is a cost of production projection for the 2012 corn and bean crop. Items in bold are weekly changes depending on where the market closes. The graph that follows each table is the breakeven point based on the costs presented before the graph.

Items in bold print are weekly changes.

Items in bold print are weekly changes.

December 2012 Corn

November 2012 Beans

May 4, 2012

First and Second Resistance and Support levels as of E-CBOT close the morning of May 4, 2012.

Old Farmers Wisdom: The straw, was probably invented by the Egyptian Brewers to taste in the process of beer without removing the fermenting agents which floated on the top of the container.

The information contained in this letter is taken from sources which we believe to be reliable, but is not guaranteed by us as to accuracy or completeness and is sent to you for information purpose only. There is a risk of loss when trading commodity futures and options. Interstate Mills bases its recommendations solely on the judgment of Interstate Mills personal.

CORN

2011 Crop-Options: Consider selling a July $6.00 put for 13 cents. July options expire on June 22. Call office for details.

2011 Crop-Futures: You are sold at $5.88 cash on 85% of production. Hedge 10% at $6.96 versus July futures.  July closed 4/30 at $6.34 1/4.

2012 Crop-Futures: You are hedged 35% at $5.33 versus December futures. Consider hedging 15% at $5.70 versus December. December closed 4/30 at $5.43 1/4.

2013 Crop-Futures: You are hedged 15% at $5.16. Hedge 5% at $5.99 versus December.  December closed 4/30 at $5.43 1/2.

2014 Crop-Futures: December closed 4/30 at $5.24 1/2.

2015 Crop-Futures: December closed 4/30 at $5.26 1/2.

Market movers: The International Grains Council says China’s 2012-13 corn imports will rise 50% to 6mmt. Their forecast for 2011-12 stayed the same at 4 mmt. Weekly ethanol production was reported at its lowest level since October 2011. Farmer selling has increased as futures have moved higher. US corn planting progress is estimated at 53% versus the five year average of 27%.

Trend is sideways/higher.

Export sales last week 25.4 mb versus 11.8 mb previous week.

Export inspections 24.9 mb versus 29.4 mb last week

Funds were estimated long 72,600 futures contracts versus long 96,700 last week.

BEANS

2011 Crop-Options: Consider selling a July $14.00 put and collecting about 15 cents.  July options expire on June 22^nd. Call office for details.

2011 Crop-Futures: You have priced 100% at $11.36 average cash price. You priced the remaining when July futures reached $14.70. July Closed 4/30 at $15.05 1/2.

2012 Crop-Futures: You are hedged 45% at $12.20 versus November. Consider hedging 10% at $14.00. Closed 4/30 at $13.81.

2013 Crop-Futures: You are hedged 15% at $10.82 versus November futures. Hedge 5% at $12.75 versus November futures. Closed 4/30 at $12.44.

2014 Crop-Futures:  November closed 4/30 at $12.16 1/2.

2015 Crop-Futures: November closed 4/30 at $11.97.

Market movers: US soybean planting progress is estimated at 12% versus the five year average of 5%. AgRural cut its forecast of Brazilian soybean production to 66.2 versus 66.7 mmt previously. A private firm lowered its forecast of Argentine soybean production to 40 versus 45 mmt earlier this month.

Trend is sideways/higher.

Export sales last week 34.0 mb versus 13.8 mb previous week.

Export inspections 15.5 mb versus 12.0 mb last week.

Funds were estimated long 233,500 future contracts versus long 212,900 last week.

For more information call Tim Donelan 800-433-4385

Item in bold print are weekly changes.

The information contained in this letter is taken from sources which we believe to be reliable, but is not guaranteed by us as to accuracy or completeness and is sent to you for information purposes only. There is a risk of loss when trading commodity futures and options. Country Hedging Inc. bases its recommendations solely on the judgment of Country Hedging Inc. personnel.

Nearby corn carrying corn markets

Price changes are estimates.

My Ag Econ education continues, extreme tightness, by historical norms, on basis looks to drive the bus on old crop corn, funds and pundits continue to disparage new crop corn as much of the large projected acreage will go in the ground this week.  April 23 through May 5 is optimal planting on corn so it should be off to an ideal start. Rampant bull spreading appears to call into question available old crop bushels.  Are they out here or not? Producers appear content to slam corn in the ground and will worry about marketing any remaining old crop at a later time.  Corn continues to feel pressure from global perceptions about the availability of alternatives, i.e. feed wheat.  But that tune does not play well in Peoria or Cedar Rapids for that matter. Soybeans remain a riddle wrapped in an enigma, surrounded by mystery.  South America’s weather problems continue to call into question crop size, and political posturing over currency values call into question reliability and a willingness to be a dependable global supplier. So, beans remain a hot topic.

Lael Weselmann, Grain Merchandiser

Strange Facts

• The Mongol emperor Genghis Khan was originally named Temujin.
• In most advertisements including newspapers, the time on the watch is at 10:10 because the arms frame the brand of the watch.
• Cleo and Caesar were the early stage names of Cher and Sonny Bono.
• Alfred Hitchcock didn’t have a belly-button, it was sown up after surgery.

With the today’s market volatility it becomes increasingly more difficult to stay informed about the markets. One way Interstate Mills is trying to help producers combat this problem is by using the DTN Portal linked with our website www.interstatemills.com. Through this program we are able to send e-mails and text messages to our producers to better inform them of current market situations. Lately we have also been using this feature to communicate with producers about opportunities that may present themselves throughout the marketing day. To get more information about this free service please contact me at (507)456-5276 or e-mail me at kyles@interstatemills.com.

The following is a cost of production projection for the 2012 corn and bean crop. Items in bold are weekly changes depending on where the market closes. The graph that follows each table is the breakeven point based on the costs presented before the graph.

Items in bold print are weekly changes.

Items in bold print are weekly changes.

Nearby corn carried the corn markets for the majority of the week. As we move forward planting and emergence throughout the entire US is well above average with planting at 28% complete compared to a 15% average over the past five years. Next week there is a call for rain throughout the upper Midwest which should help push emergence to higher levels faster. After this weekend we look to warm up and turn closer to summer.

The soybean market has continued to hold its high prices with lots volatility as the battle for acres continues. Beans have seen very high rallies over the past two sessions only to be cut down by profit taking in most instances. Planted acres numbers came in at the beginning of the week ahead of schedule with 6% planted compared to a five year average of 2%. Good planting conditions will help keep the bean market up as it tries to take as many acres as possible from corn.

Each Monday the planting progress reports are released.

Kyle Sommers, Grain Originator

December 2012 Corn

November 2012 Beans

April 26, 2012

First and Second Resistance and Support levels as of E-CBOT close the morning of April 26, 2012.

Old Farmers Wisdom: Crocodile babies do not have sex chromosomes; the temperature at which the egg develops determines gender.

The information contained in this letter is taken from sources which we believe to be reliable, but is not guaranteed by us as to accuracy or completeness and is sent to you for information purpose only. There is a risk of loss when trading commodity futures and options. Interstate Mills bases its recommendations solely on the judgment of Interstate Mills personal.