CORN
- Corn futures are trading slightly higher this morning. December corn futures are up 3/4 cent to 419-3/4 and March futures are up 1/2 cent to 436-1/4.
- The U.S. Dollar saw a strong move this morning, with it recovering nearly all losses from the previous six trading sessions overnight. The dollar strengthening will serve as a headwind to U.S. grain exports as it makes U.S. products more expensive to foreign importers.
- The increased corn stocks from last week’s Grain Stocks report will continue to weigh on the market. Harvest selling is expected to add further pressure.
SOYBEANS
- Soybean futures have started the day higher with November futures up 2-1/2 cents to 1020-1/2 and January futures up 2-1/2 cents to 1039-1/2.
- The soybean market will continue to look for guidance regarding any potential U.S. – China trade deals. So far, China has not purchased any U.S. soybeans throughout the harvest window.
- The U.S. Treasury Secretary made a statement last week that the federal government would support American farmers in light of China’s refusal to purchase U.S. soybeans.
WHEAT
- Wheat has started the day higher. December Chicago wheat futures are up 1-1/4 cent to 516-1/2. December KC wheat is up 3/4 cent to 497-3/4, and December MPLS wheat is unchanged at 5.59.
- The rebound in the U.S. Dollar will potentially limit wheat export strength. Additional strength in the dollar trade will begin to weigh on the wheat market.
- The Buenos Aires Grain Exchange reports that 93% of Argentina’s wheat crop is rated good to excellent, up 4 points from last week. BAGE also raised its production estimate to 22 mmt earlier this week, compared to USDA’s most recent forecast of 19.5 mmt.
Author
Matthew Lucas