Grains and oilseeds are mixed on Monday following the overnight session. The U.S. dollar is steady this morning. Crude oil is sharply lower and is pushing to fresh lows. Stock futures are higher.
CORN
December corn is down 0.50 cents at $4.22. March corn is unchanged at $4.36 ½.
Futures continued to test the 100-day moving average, which has served as technical resistance since September. Prices are bumping up against the upper end of their range after recent speculative short-covering.
Rain passed over portions of the Eastern Corn Belt over the weekend and brought significant moisture. Harvest was likely stalled for some areas, but the moisture is welcome for parts of the Mississippi River Valley.
The government shutdown continued into its fourth week, with Democrats and Republicans still unable to make a deal. As every week goes by, the chances of the November WASDE report being released declines.
Brazilian consultancy firm AgRural reported that Brazil’s summer corn planting reached 51 percent complete last week, compared to 48 percent the same week last year.
SOYBEANS
November soybeans are up 8.25 cents at $10.28 ¼. January soybeans are 9.25 cents higher at $10.46. Soybean meal is sharply higher, led by a short-covering rally as speculators exit short positions. Soybean meal is steady.
Futures surged overnight, following Friday’s gains of 8.75 cents. Prices fell short of the 200-day moving average before giving back a quarter of their gains. A short-covering rally in soybean meal helped lead soybeans higher.
There is still speculation about whether President Trump and President Xi will meet at the end of the month. Additionally, traders are awaiting biofuel policy mandates that could signal future demand outlooks.
At this point, it is difficult to find an unharvested soybean field when driving around central and northern Iowa. The harvest is entering its final stretch if it hasn’t already, which could mean alleviated harvest pressure.
AgRural reported that Brazil’s soybean planting reached 24 percent complete, compared to just 18 percent the same week last year. The pace is below the 30 percent recorded two years ago, though rain in the Central-west region has helped boost progress.
Radar maps showed precipitation made its way into Mato Grosso over the weekend and early this week. Forecasts are calling for below-average rainfall in Brazil over the next 10 days, though recent precipitation will aid planting progress.
WHEAT
December Chicago wheat is down 1.25 cents at $5.02 ½. KC wheat is down 1.25 cents at $4.90 ¼. Spring wheat is unchanged at $5.48 ½.
Winter wheat prices posted a steady rebound from last week’s contract lows, with the SRW wheat contract rising 5.25 cents on the week. The fresh lows still signal the possibility of further weakness.
Wheat spreads have been strengthening over the past month. Lower prices could continue to drum up export business and keep spreads firm.
Government forecasts are calling for heavier rainfall totals for the Central and Southern Plains this week. This week’s rain could help eat away moisture deficits in Eastern Texas, Oklahoma, and Kansas.
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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.