Grains are mostly slightly lower following the overnight session. Stepping back from a few days of firm trade. Equities and bonds are higher on a CPI report that showed inflation was less than expected in the previous reporting period. Showing optimism that the Fed can continue to cut rates.
CORN
December corn is down 2.50 at $4.2550. March corn is down 2 cents at $4.3925.
Corn steps back here as it approaches the 4.30 area of resistance. Multiple strong days of trade has momentum higher and optimism that we will be able to finally get through, or at least challenge, what is left of the July 4th weekend gap at 4.3275. With harvest likely beyond 50% and hedge pressure presumably subsiding, all eyes will be on trade negotiations with China. The US and China will have talks this weekend in preparation for the Trump/Xi meeting that is, for now, set for next Thursday.
SOYBEANS
November soybeans are down 1.50 cents at $10.4325. January soybeans are down 1.50 cents at $10.6050. Soybean oil is lower, while soybean meal is higher.
Rumors abound yesterday that China is undercover buying soybeans and wheat while government reporting is offline. An idea we proposed as a potential before it was even official that the government was going to shut down. This should be no surprise to any of us. If anything, I think it would be extremely disappointing if they, or any other importer for that matter, was not trying to covertly scoop up supplies.
WHEAT
December Chicago wheat is down .25 at $5.1275. KC wheat is flat at $5.00. Spring wheat is down .0125 cents at $5.5675.
Wheat presumably had a round one spat with some short covering. Its inability to make materially new lows with continued “bad news” over the past few weeks and rumors of undercover export sales sent the market higher. The US crop continues to get established in good shape and the same could be said about the European 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.