Grains and oilseeds are lower on Monday following the overnight session. The USDA will release its Quarterly Grains Stocks and Small Grains Summary reports tomorrow. The U.S. dollar is lower. Crude oil is sharply lower. Stock futures are working higher.
CORN
December corn is down 2.25 cents at $4.19 ¾. March corn is down 2.25 cents at $4.36 ½.
Limited precipitation over the past few days likely propelled the corn harvest pace. Limited rain expected for a large section of the U.S. over the next few days will likely keep harvest moving along quickly and contribute to harvest pressure.
Grain markets are awaiting tomorrow’s Quarterly Grain Stocks report, which is expected to show lower corn supplies compared to last year. If the report comes in bullish, prices could still be limited by farmers selling.
Brazilian consultancy firm AgRural reported that 32 percent of the country’s summer corn planting was complete as of last week. Progress compared to 30 percent complete the same week last year.
India is considering buying U.S. corn to help produce ethanol in the country as part of an effort to reach a trade agreement.
SOYBEANS
November soybeans are 5 cents lower at $10.08 ¾. January soybeans are down 4.75 cents at $10.28 ¼. Soybean oil is lower. Soybean meal is higher, as spreading continues in the product markets.
Futures consolidated above $10 a bushel last week following a sharp selloff that took prices to the lowest in over a month. Losses in the soybean meal market led the complex lower, which fell near multi-year lows.
AgRural reported that 3.2 percent of Brazil’s soybean crop was planted as of last week, up from 2 percent the same week last year. Rainfall has been improving in the country and supporting sowing.
Progress is running well ahead of average in Mato Grosso, as moisture deficits improve. Planting is on schedule so long as rains continue enough for farmers to feel confident about crop establishment.
WHEAT
December Chicago wheat is down 1 cent at $5.18 ¾. KC wheat is down 0.75 cents at $5.04 ¾. Spring wheat is down 0.75 cents at $5.67.
Futures traded slightly lower last week after Tuesday’s reversal from contract lows was followed by limited buying. Still, last week’s lows in the Chicago market could help find a low. However, large U.S. supplies could keep a lid on prices.
Limited rainfall is expected to reach winter wheat areas over the next few days, though the next 10 days will likely be drier than normal.
Global wheat prices have been stabilizing, though European prices pushed lower last week due to strong global competition.
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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.