Grains and oilseeds are higher on Wednesday following the overnight session. The U.S. dollar is pushing back to its two-month high. Crude oil is moderately higher as prices recover from fresh multi-month lows. Stock futures are moderately higher.
CORN
December corn is up 1.25 cents at $4.21. March corn is up 0.75 cents at $4.34 ½.
Futures failed to garner follow-through buying on Tuesday, with prices closing 3.50 cents lower on the day. Yesterday marked the first down day in six trading sessions. Prices failed to move above the 100-day moving average for a fourth day, as the level proves to be more difficult.
Harvest windows remain for much of the Corn Belt over the next week, with the bulk of precipitation focused in the Plains.
India may agree to lower GMO import restrictions that would allow for some imports of U.S. corn, likely for ethanol production.
Heavy rains in northern China have disrupted the corn harvest in the region. Record grain harvests have allowed China to reduce its corn imports to practically zero. Harvest disruptions could cause the country to import some volumes.
SOYBEANS
November soybeans are up 3.50 cents at $10.34 ¼. January soybeans are up 3.50 cents at $10.52. Soybean oil is higher, while soybean meal is lower.
Lots of headline risk remains in the soybean market. President Trump commented on Tuesday that his meeting with Xi may not happen this month, sparking another selloff in soybean futures during the afternoon. Prices closed just 1.50 cents lower but were still 8 cents off their highs.
Prices recouped their losses overnight, led by higher soybean oil. Soybean meal prices have been the most impressive lately. Speculators have likely been covering some short positions. A move above $290 could trigger additional short covering.
Japan is reportedly finalizing a package to purchase U.S. goods ahead of a meeting with President Trump. Japan is mulling over reducing some soybean purchases from Brazil to make room for U.S. soy.
WHEAT
December Chicago wheat is up 1.25 cents at $5.01 ½. KC wheat is up 1.25 cents at $4.86 ¼. Spring wheat is up 1.25 cents at $5.46.
Futures fell sharply on Tuesday, with the Chicago contract losing 5 cents to close just above $5 a bushel. Prices continued to hold at the level overnight, which might provide some minor support.
Fundamental news remains bearish, aside from strong U.S. exports. Weather models continue to call for an impressive amount of rain expected for the Southern Plains this weekend.
The weather in Argentina is ideal for crops entering their final development stages. Farmers should begin harvesting the winter wheat crop next month. The country’s wheat prices have been working lower in anticipation of a large crop.
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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.