CORN
- Corn is trading higher this morning after relatively quiet price action so far this week. December corn remains above the 50 and 20-day moving averages with support at those levels.
- Initial yield reports from the driest areas of the Corn Belt, Ohio, and Indiana, have reported yields lower than last year and below expectations. Many are pointing to the hot and dry finish to the crop this growing season.
- The weekly EIA ethanol report will be released today at 10 A.M. Ethanol usage has been strong nearly all year but we are entering a time of year when gasoline demand historically slumps.
SOYBEANS
- Soybeans are trading higher this morning and are within a nickel of the top end of their recent range. November soybeans are above the 20-day moving average and trading right near the 50-day moving average here this morning. November soybeans have not had a close above the 50-day since late May.
- After a two-day holiday to start the week, soybeans on the Dalian exchange in China have surged overnight to their highest level since late July and are trading at nearly a $4 per bushel premium to CBOT soybeans.
- Some rainfall is expected to continue falling in southern Brazil into the weekend, but northern and central Brazil will remain warm and dry through September. Producers in those areas will need to wait for consistent rains to begin planting 1st crop soybeans.
WHEAT
- All three wheat classes are trading slightly higher this morning and are attempting to recover from Monday’s correction in prices.
- Besides the increased tensions in the Black Sea region, hot and dry conditions that began earlier this summer and have drug into fall are making winter wheat establishment difficult in both eastern Ukraine and western Russia.
- Strong US wheat exports and developing dryness in key wheat producing areas around the globe have prompted the Managed Money funds to trim their net short position in wheat by nearly 50,000 contracts in the last few weeks.
Author
Keegan Madigan