Grains and oilseeds are mixed on Tuesday following the overnight session. The U.S. dollar continued to move higher. Crude oil is lower following yesterday’s gains. Stock futures are higher, with S&P 500 futures hitting new all-time highs overnight.
CORN
December corn is up 0.50 cents at $4.22 ¼. March corn is down 0.25 cents at $4.38.
Futures traded in a fairly narrow range on Monday but finished 2.75 cents higher on the day after catching a bid about midday. The lack of market data has likely muted trade in the grains to start the week.
The federal government remains in a partial shutdown after the Senate failed to reach an agreement again on Monday. The chances of the October WASDE report being delayed from Thursday’s release are becoming more likely. Bloomberg may still release pre-report survey estimates, which we will report ahead of Thursday.
Recent rainfall should benefit soil moisture for areas experiencing deficits in the Corn Belt. More precipitation is needed to break the current drought before next year, which may not come until the winter months.
SOYBEANS
November soybeans are up 3.75 cents at $10.21 ½. January soybeans are up 2.75 cents at $10.38 ½. Soybean meal is higher following yesterday’s losses. Soybean oil is higher and extended yesterday’s moderate gains.
Soybean futures initial traded higher yesterday before reversing from their intraday highs and closing just 0.25 cents higher. Prices came under pressure from soybean meal, which struggled following Friday’s strong reversal day.
Soybean meal spreads indicate an adequately supplied market a likely short-term supply crush last month. Record U.S. crush is expected to keep meal production high, with an emphasis on exports needed to keep product moving.
Brazil’s soybean exports continued to run at a record in September, according to data from the country’s trade ministry. Shipments have been winding down, and the U.S. would usually be shipping more soybeans at this time. However, the lack of sales to China has muted demand for U.S. soybeans.
WHEAT
December Chicago wheat is up 0.75 cents at $5.13 ½. KC wheat is up 1.25 cents at $4.96 ¾. Spring wheat is down 0.50 cents at $5.56.
Chicago futures struggled to trade above Friday’s highs following their little short-covering rally. The market has done little to reduce its current bearish trend, as it continues to post lower highs and lower lows.
Wheat export inspections last week were softer than previous weeks but were still up from a year ago. There has been strong demand for U.S. wheat lately, but that has been because of higher supplies, lower prices, and a softer U.S. dollar.
Beneficial rainfall made its way across hard red winter wheat areas in Kansas and South Dakota over the past few days.
An agribusiness senior insights manager at one of Australia’s largest banks told Bloomberg that crops could struggle following lower-than-normal precipitation throughout September. Australia’s agriculture ministry currently forecasts the country’s wheat crop at the fourth-largest on record.
Bangladesh’s Finance Ministry approved a plan to buy 220,000 MT of wheat from the U.S. in a government-to-government deal. Bangladesh is not a strong U.S. wheat buyer, but the purchase would double current sales to the country.
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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.