Grains and oilseeds are mixed on Tuesday following the overnight session. The U.S. dollar is higher. Crude oil is higher after recovering from losses on Monday. Stock futures are steady following yesterday’s sharp gains.
CORN
December corn is down 1.25 cents at $4.22. March corn is down 1.25 cents at $4.35 ¾.
Corn futures continued to test the 100-day moving average on Monday but ultimately held onto last week’s gains after finishing slightly higher. Meanwhile, prices have consolidated the past couple of sessions since last week’s surge.
The $4.24 level is proving to be a difficult area after it contained a move higher Oct. 7. Otherwise, the $4.30 area could prove to be a larger challenge to get past.
Areas of rain are likely delaying harvest in the Corn Belt, though the forecast is fairly dry for Iowa, Nebraska, and South Dakota over the next week.
U.S. export inspection data on Monday showed that corn movements totaled 1.32 MMT last week, up nearly 9 percent from the previous week and 32 percent higher than the same week last year. Inspections remained well above their seasonal average amid strong demand from Mexico, Japan, and Colombia.
SOYBEANS
November soybeans are up 1.75 cents at $10.33 ½. January soybeans are up 1.75 cents at $10.51 ¾. Soybean meal is unchanged. Soybean oil is moderately lower.
Futures extended gains again and surged another 12.25 cents higher on Monday. Prices followed soybean meal, which has led the complex higher over the past couple of days. The November contract stopped short of the 200-day moving average, which has served as technical resistance in the past.
A lack of farmer selling has been attributed as a factor of the recent buying as soybean crushers search for supplies. Harvest is wrapping up in areas, and it sounds like crushers are looking for supplies to continue their record crush pace.
U.S. soybean export inspections totaled 1.47 MMT, a marketing-year high. However, shipments were 42 percent behind the same week last year, with total inspections running 31 percent lower than the previous season.
The lack of Chinese demand continues to challenge soybean exports despite growing demand from Egypt and other non-China countries.
WHEAT
December Chicago wheat is down 2.75 cents at $5.02. KC wheat is down 2.50 cents at $4.87 ½. Spring wheat is down 0.50 cents at $5.48.
Winter wheat futures were steady on Monday, with Chicago futures finishing the day just 1 cent higher. Prices remain in a clear downtrend, filled with lower highs and lower lows. A move above $5.20 would be a step in the right direction to break the current trend. KC wheat climbing above $5 would also be positive.
Rain totals continued to grow for this week’s rainfall expected in the Southern Plains. Nutrien Ag Solutions’ Eric Snodgrass said a cutoff low is expected to drop precipitation in winter wheat country, covering Kansas, Oklahoma, East Texas, Missouri, Arkansas, and Louisiana.
Global wheat prospects remain optimistic. Global wheat export prices have increased over the past week as harvest pressure largely subsides.
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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.