GX_GR118 Springfield, IL Thu Mar 25, 2010 USDA-IL Dept of Ag Market News Value enhanced grain summary This report describes Value Enhanced grain premiums contracted to Illinois growers for fall delivery. Grain prices are expressed as either a basis over the nearby Chicago Board of Trade (CBOT) futures contract at time of delivery, or as a straight premium over the spot cash price. Many of the contracts are variety specific, with only certain varieties approved. Value enhanced grain contracts have additional quality specifications concerning moisture, foreign material, damage, stress cracks or low temperature drying, and test weights. Delivery time is also negotiated with many contracts on a buyers call basis with many buyers requiring grain to be stored on the farm until after the harvest rush. Compared to last spring's report, the demand for all value enhanced grain continues to decline. Several terminals have either not established fall programs or determined if they will have any programs this Fall. A lack of buyers for NON-GMO soybeans has resulted in current reporting terminals not contracting for fall soybeans although several will be buying some NON-GMO soybeans on the spot market this fall. While overall demand for Value Enhanced grain has declined, there remain opportunities for Illinois producers interested in growing Value Enhanced grain. Several companies in Illinois deal exclusively in specialty grains. The programs these companies offer vary to such a degree they are not included in this report. The contracts that some companies offer are so complex that no two contracts are alike. Most require on-farm storage with premiums paid for this storage. In some instances the companies provide the seed as a part of the contract. While these companies are always looking for new growers, they are selective on who they contract with. Some companies would not reveal prices because they vary so much from producer to producer. Additionally, many terminals and processors have programs involving variety specific contracts which are not included in this report. Food Grade white corn contract premiums are 15 to 20 cents lower. Not enough high starch or hard endosperm corn contracts reported to establish a market trend. NON-GMO corn premiums are 35 to 40 cents lower. No NON-GMO soybean contracts reported. Low linolenic soybean prices were steady to 5 cents higher. Product/differentiating Pricing characteristics (cents/bu. del. elevator) Food Grade Yellow corn No contracts reported high amounts of vitreous endosperm White Corn +15 to +35 CBOT, buyers call +40 to +50 white kernel color white starch High Oil Corn No contracts reported oil content of 6.5% or greater High Starch Corn No contracts reported extractable starch yields greater than 69-70% Hard Endosperm Corn No contracts reported Waxy Corn No contracts reported starch over 99% amyl pectin Blue Corn No contracts reported NON-GMO Corn buyers call +20 to +35 cash -------------------------------------------------------------------------------- NON-GMO Soybeans No contracts reported Edible Soybeans No contracts reported High Protein No contracts reported Low Linolenic +55 to +60 cash variety specific No. 2 Yellow Corn has average oil content 3.5-4.5, starch is 72-76% Amyl pectin and 24-28% amylase, protein average is 8.5%, test weight avg 56 lb/bu. Nutritionally Enhanced corn is higher in protein, amino acids, and oil than commodity corn. No. 1 Yellow Soybeans have average protein content of 35-37%. Contracts are delivered participating elevator unless otherwise noted. Source: USDA-Illinois Dept of Ag Market News Springfield Il 217-782-4925 in state only toll free 888-458-4787 www.ams.usda.gov/mnreports/GX_GR118 .