FARM MARKET NEWS - SOYBEAN AND WHEAT REPORT FOR Thu, September 2
Bank of Canada Noon exchange rate was 1.052 up 0.0023
Chicago soybeans closed slightly higher.

       NOV10   HI 10.10  1/4          NOV10    HI 10.10  1/4
              LOW 10.00  3/4                  LOW 10.00  3/4
             CLOSE10.09   Up 3 1/2          CLOSE 10.09   Up 3 1/2

             OLD CROP                             NEW CROP
Location     Basis 1mt  2mt  3mt Adj.  $/bu  $/mt BasisAdj.  $/bu  $/mt
ELEVATORS         +NOV1+NOV1+NOV10
CK Low       -0.17                     9.92 364.50-0.36      9.73 357.52
CK High      -0.05                    10.04 368.91-0.28      9.81 360.46
CK Average   -0.12               -0.67 9.97 366.19-0.34-0.90 9.75 358.32
Essex Cty    -0.11                     9.98 366.70-0.32      9.77 358.99
Mdsx Low     -0.15                     9.94 365.23-0.35      9.74 357.88
Mdsx High    0.04                     10.13 372.21-0.29      9.80 360.09
Mdsx Average -0.07               -0.6210.02 368.05-0.31-0.88 9.78 359.23
Hensall      -0.15                     9.94 365.23-0.35      9.74 357.88
Bruce        -0.15                     9.94 365.23-0.35      9.74 357.88
Putnam       -0.15                     9.94 365.23-0.35      9.74 357.88
Princeton    -0.07                    10.02 368.17-0.34      9.75 358.25
Durham       0.02                     10.11 371.48-0.32      9.77 358.99
Norfolk       N/A                                 -0.30      9.79 359.72
Trenton       N/A                                 -0.15      9.94 365.23
Winchester    N/A                                 0.04      10.13 372.21
North Gower   N/A                                  N/A
Huron FOB    0.00                     10.09 370.74-0.30      9.79 359.72
Kent FOB      N/A                                 -0.35      9.74 357.88
Lambton FOB   N/A                                 -0.35      9.74 357.88
Middlesex FOB-0.05 N/A  N/A  N/A      10.04 368.91-0.15      9.94 365.23

PROCESSORS
Hamilton     0.29  N/A  N/A  N/A      10.38 381.400.15      10.24 376.26
Windsor      0.34  N/A  N/A  N/A      10.43 383.240.08      10.17 373.68
Winchester   -0.10                     9.99 367.070.10      10.19 374.42

TRANSFER
Hamilton      N/A  N/A  N/A  N/A                  0.15      10.24 376.26
Pt. Stanley   N/A                                 -0.30      9.79 359.72
Sarnia       0.18                     10.27 377.360.08      10.17 373.68
Owen Sound    N/A                                  N/A
Sorel QC      N/A                                 0.70      10.79 396.46

Toledo El.   -0.08                    10.01 367.65-0.26      9.83 361.04


Bank of Canada Noon exchange rate was 1.052 up 0.0023
Chicago wheat closed mixed.
     DEC10     HI 7.23                    JUL11      HI 7.23  3/4
              LOW 7.06                              LOW 7.13  3/4
            CLOSE 7.13  3/4  Up 5                 CLOSE 7.15   Down  3/4

Minni wheat closed mixed.
     DEC10     HI 7.40  1/2               SEP11      HI 7.22
              LOW 7.23  1/4                         LOW 7.12
            CLOSE 7.35   Up 9                     CLOSE 7.13  1/4  Down 4 1/2

GFO Cash Wheat Prices - DEL Terminal
Current Crop 10   Soft White(C)  Hard Red(C)    Soft Red(C)    Red Spring(M)
Basis                -1.09         -0.88           -1.56         -0.92
CAD $/bu              6.05          6.26            5.57          6.43
CAD $/tonne         222.24        229.99          204.81        236.28


Direct MarkHarvest 2010                 Harvest 2011
           DELIVERED BASIS              DELIVERED BASIS
Location   SWW(C)  HRW(C) SRW(C) HRS(M)  SWW(C)  HRW(C) SRW(C) HRS(M)
ELEVATORS
Brgssvll     N/A   -1.25   -2.00   N/A    N/A    -1.10   -1.90   N/A
London      -1.03  -1.30   -1.98   N/A   -1.40   -1.19   -2.03   N/A
Hensall     -1.30   N/A    -2.05   N/A   -1.30    N/A    -2.05   N/A
Trenton      N/A    N/A    -1.72   N/A    N/A     N/A    -1.80   N/A
Winchester   N/A    N/A     N/A   -0.57   N/A     N/A     N/A    N/A
Essex        N/A    N/A     N/A    N/A    N/A     N/A    -2.10   N/A
Norwich     -1.30   N/A    -2.05   N/A   -1.30    N/A    -2.05   N/A
Mt. Elgin    N/A    N/A     N/A    N/A    N/A     N/A     N/A    N/A
Kent Bridge -1.30   N/A    -2.05   N/A   -1.30    N/A    -2.05   N/A
Chatham      N/A   -1.25   -2.05   N/A    N/A    -1.10   -2.05   N/A
Brigden      N/A   -1.25   -2.05   N/A    N/A    -1.10   -2.05   N/A
Palmerston   N/A   -1.20   -2.28  -0.47   N/A    -1.03   -2.00  -0.58
Mitchell    -1.30  -1.20   -2.05   N/A   -1.30   -1.20   -2.05   N/A
Thornton     N/A    N/A     N/A   -0.93   N/A     N/A     N/A    N/A
North Gower  N/A    N/A     N/A    N/A    N/A     N/A     N/A    N/A

TERMINAL
Sarnia       N/A    N/A     N/A    N/A   -1.16   -0.89   -1.67   N/A
Hamilton     N/A    N/A    -1.50   N/A    N/A     N/A    -1.50   N/A
Pt. Stanley  N/A    N/A    -1.95   N/A    N/A     N/A    -1.95   N/A

PROCESSORS
Toledo FM    N/A    N/A    -0.67   N/A    0.93    N/A    -0.66   N/A

Toledo El. 6.03US         6.35CA         6.02US         6.36CA

GFO Contract Wheat Prices - DEL Terminal
Harvest 11        Soft White(C)  Hard Red(C)    Soft Red(C)    Red Spring(M)
Basis                -1.08         -0.87           -1.66         -1.03
CAD $/bu              6.07          6.28            5.49          6.11
CAD $/tonne         223.10        230.86          201.76        224.36

(C)-Basis over the Chicago Board of Trade futures
(M)-Basis over the Minneapolis Grain Exchange

FEED GRAINS
Bayport Wheat             240.00 - 245.00
Bayport Oats              265.00
Bayport Barley            215.00
FOB Hm Soymeal            382.73 - 384.93
DDG's FOB Sarnia          135.00

DTN Closing Grain Comments    09/02 14:32
   Grains Higher in Quiet Session

   With a late push, corn and bean contracts joined wheat higher Thursday in
quiet trade. How quiet was it? Trading ranges during the day session were:
December corn 4 1/2 cents, November beans 9 1/2 cents and December Chicago
wheat 8 1/2 cents.

DTN Midday Grain Comments     09/02 11:44

   Wheat Higher at Midday

   Mixed trade has been the theme today with light position-squaring ahead of
the upcoming holiday weekend.

By David Fiala
DTN Contributing Analyst

MARKET SUMMARY:  

   The U.S. stock market indices are lightly lower with the Dow down 15. The
interest rate products are mostly lower. The dollar index is down 10. Energies
are higher with crude up 35. Cattle and hogs are higher. Precious metals are
higher with gold up $6.

GENERAL COMMENTS

CORN

   Corn trade is steady to 2 lower at midday due to light profit-taking ahead
of the upcoming holiday weekend. The September USDA Supply and Demand numbers
will be seen next Friday and we are seeing crop estimates. The Linn Group
released updated production estimates yesterday; they used a corn yield of
160.7, which was down 1.4 from a month ago and favoring a lower number versus
the recent USDA numbers. FC Stone gave a 162.9-bushel-per-acre number, which is
likely around where we will have the average trade guess heading into the
report next week. The Informa numbers will be seen tomorrow, which should
provide direction the rest of the week. The U.S. balance sheet is tight and we
need to not only plant but grow a big South American crop in order to loosen up
the world picture. It will likely be hard to break the market for a while even
if the U.S. crop is as big as, or a little bigger than expected. On the
December chart, a move above the $4.50 level would likely promote additional
chart buying, but we seem to have trouble moving higher even though we have
been close to this level for a while. Support is down at $4.33 which is the
10-day. There were net cancellations of 28,500 tons of old crop corn on the
export report his morning, but new crop sales were big at 1.686 million
bushels.

SOYBEANS

   Soybean trade is 1 to 3 lower at midday, meal is steady, and oil is down 10
to 20 points. On the November chart, support is just below the current market
$9.99 which is the 40-day. Resistance is up at the 20-day at $10.17. The Linn
Group released its updated bean production estimate yesterday at 43.6 bushels
per acre. The FC stone estimate was at 43.5 bushels per acre. We will continue
to watch for private yield numbers this week which should direct trade, but the
market appears to be in sideways mode. The export sales came in at 900 tons of
old crop and 613,000 tons of new crop; combined, they were below expectations.
Meal sales were higher than expected at 156,000 tons of old crop and new crop
sales were 222,400 tons. Oil sales were low at 7,900 tons of old crop and 4,400
tons of new crop.

WHEAT

   Wheat trade is 6 to 12 higher at midday due to continued global production
concerns. Earlier this week, the Russian production estimate came in at 29.9
million tons versus 41.2 million tons a year ago. This war higher than
expected, but Russia announced this morning that it may not lift the export ban
until after harvest is completed next year. The recent dry conditions in Russia
have also caused a slow down in winter wheat planting there with only 1 million
hectares planted versus 3.9 million at this time a year ago. It is still early
in the planting season though. The export sales were reported at 1.024 million
tons which was just above the high side of expectations.

   David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered Commodity Trading Advisor.


(AG)

Copyright 2010 DTN/The Progressive Farmer, A Telvent Brand. All rights reserved.

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