Grains and oilseeds surged for another day on Tuesday amid continued optimism on U.S. and China relations. The U.S. dollar is higher. Crude oil is higher. Stock futures are higher and pushing to new records.
CORN
December corn is up 2.75 cents following the overnight session at $4.31 ½. March corn is up 2.50 cents at $4.46 ¾.
Corn futures extended gains for a second day on Tuesday, with prices pushing up to the 200-day moving average for the first time since May.
The U.S. corn harvest is nearing completion, with some delays from recent rain.
Conditions are favorable for planting and establishment in southern Brazil and Argentina.
SOYBEANS
January soybeans are up 10.25 cents at $10.95 ¼. November soybeans are 6 cents higher at $11 even. Soybean oil is lower. Soybean meal is sharply higher following an upside breakout above $300 per ton.
Soybean futures extended their rally to 15-month highs ahead of President Trump’s meeting with President Xi on Thursday. The White House has been touting that China is going to make “substantial” soybean purchases after negotiators came to terms on multiple contentious points.
China has yet to confirm that claim. However, purchases from the country would add to soybean demand that was already strong from non-China buyers ahead of the government shutdown.
WHEAT
December Chicago wheat is up 5.75 cents at $5.31 ¾. KC wheat is up 5.75 cents at $5.20. Spring wheat is up 4.50 cents at $5.64 ¾.
Futures surged along with corn and soybeans this week. December Chicago is nearing resistance levels from August around $5.34, which is also near the 100-day moving average. The recent rally has been driven by speculative short-covering as traders have been unwilling to hold onto losing positions.
Global wheat prices have also been turning higher. It seems like the market is finally moving past the significant amount of bearish news we’ve seen over the past few months.
—
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.