KTI Market Notes for Friday July 30th, 2010

Boots on the Ground Report:

Agriculture Conditions

We received an update from the fields from  our “road warrior” John K.   Here is what he writes about the field and crop conditions he is seeing right now.

John Writes:

Hi Kevin…here is the crop info as seen from my truck window going up and into central Michigan….

Lots of variability in the crops from farm to farm.  Thousands of acres of corn and beans that looked just great from the road as you passed by…not able to see into the center of the fields.  Then, an overpass gives you a view not seen from flat ground.   Lots of open, bare ground w/ no crop surrounded by 6 inch yellow corn stalks that grow up and change color as the open hole expands outward.

Beans give you the same picture lots of times.  Many times a re-plant is visible…with many of those drowned out.

Going around the South end of Lake Michigan…lots of flooded areas are plainly visible…too many 2–3–4+ inch rain storms.  Going into Michigan, a lot of farm ground showed no crop…too wet to plant, or even get last years fall tillage work done.  Saw one field that still had last years corn crop in it.

Many farm fields had 2 to 6 inch beans…planted in clean ground.

Saw more than a couple corn fields in Central Michigan with 2 foot to 6 foot corn…taken over by weeds that were as tall or taller than the corn.  Other corn and bean fields with 2 to 5 foot crops of cat tails in most of the water holes.

The storms that pounded Milwaukee and Chicago last week…came right across Lake Michigan and drenched many parts on Michigan.

Only had the opportunity to speak with one cash renting farmer, he said he will probably break even with this years crop.  That means he’ll work for free.  OUCH!!

I’ll be going to Milwaukee in one week.  I’ll let you know what I see.

KTI  Road warrior .. John K, Peoria Illinois

Also, several of our other positions such as sugar, have been moving swiftly into profit territory.  Your March Sugar call has gone about 40%+ and the October (which was almost down to -90% has now just about back to break-even and possibly ready to go profitable, an amazing recovery in a very short time.

Both the October Sugar and the Canadian Dollar trades are losing time value quickly though.  Remember the October sugar options go “off the board” in early September.  So time is of the essence.  It is also a reminder of just how quickly commodities options can move.

Also, the Canadian Dollar position is offering us an opportunity to recoup some equity and this trade is at critical resistance levels.  Take a look.

Be on the lookout for any trading updates as well as other big announcements about our new media and educational products and partnerships aimed toward the commodities and resource investor who wants to take charge of their own financial destiny, all this and more from KTI next week.

For Media Bookings & Broadcast in the US & Abroad, Please contact Karen Terwilliger at media@kerrtrade.com 203-559-7247 or 203-403-2552