Grains and oilseeds are mixed on Monday following Friday’s losses. The U.S. dollar is higher again and the index moves closer to 100. Crude oil is higher. Stock futures are higher following Friday’s sharp losses.
CORN
December corn is up 0.25 cents at $4.13 ¼. March corn is down 0.75 cents at $4.28 ¼.
December corn futures broke below their tight consolidation range early on Friday. Increased selling pressure took 5.25 cents lower on the day and 6 cents lower on the week. Near-term support is around the Oct. 1 low of $4.10.
Limited showers are expected across the Western Corn Belt over the next few days, which could continue to favor harvest progress.
The U.S. corn harvest has likely reached its halfway point by now, though we still don’t have the weekly Crop Progress reports due to the government shutdown. Getting past the halfway mark could alleviate some harvest pressure moving through the back half of October.
Brazilian consultancy firm AgRural reported that 45 percent of the summer corn planting is complete, compared to 41 percent the same period last year. Weather models favor South American corn planting, with plenty of moisture expected for Brazil and Argentina over the next two weeks.
SOYBEANS
November soybeans are up 2.75 cents at $10.09 ½. January soybeans are up 3.25 cents at $10.26 ½. Soybean meal is lower. Soybean oil is higher.
November futures traded 15.50 cents lower on Friday following an escalation in trade tensions between the U.S. and China.
President Trump vowed to impose a massive increase in tariffs on Chinese imports after the country announced substantial docking fees for U.S.-related vessels entering Chinese ports. Trump effectively canceled his meeting with Xi that was set for the end of the month amid the fallout.
Trump later posted on Sunday that everything “will be fine” with China, adding that the U.S. wants to “help China, not hurt it.” Markets had recovered during the overnight session on Sunday and into Monday following the post.
China’s soybean imports reportedly hit a record 12.9 MMT for September, according to the country’s customs data. China has already shown that it can greatly reduce its reliance on import of U.S. agricultural products.
AgRural reported that 14 percent of Brazil’s soybean planting is complete, compared to eight percent the same week last year. That is now the third-fastest pace on record.
WHEAT
December Chicago wheat down 3.25 cents at $4.95 ¼. KC wheat is down 2 cents at $4.81. Spring wheat is unchanged at $5.51 ¾.
Winter wheat futures found new contract lows again on Friday in response to broad weakness in agricultural and outside markets from the trade fallout with China. Chicago futures posted 16.75 cents in losses for the week as long traders continued to get squeezed out of the market.
Wheat futures remained the weakest in the grain markets on Monday, with Chicago prices holding below the $5 handle and posting new contract lows. The wheat market remains under heavy pressure as global production estimates remain high.
Russian-based consultancy-firm SovEcon raised its Russian wheat production forecast to 87.8 MMT, up from the previous estimate of 87.2 MMT. Record yields in Siberia continue to grow.
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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.