Grains and oilseeds are mixed on Friday following the overnight session. The U.S. dollar is sharply lower. Crude oil surged overnight following news of a drone attack at a Russian export terminal. Stock futures are sharply lower for a second day.
CORN
December corn is unchanged at $4.41 ½. March corn is down 0.50 cents at $4.55.
Futures posted a strong rally and rose 6.25 cents on Thursday to $4.41 ½ a bushel, trading at the highest in more than four months. Prices broke out above last week’s highs ahead of today’s USDA report.
Prices rallying past the 200-day moving average is also a strong signal for the market. December $4.50 is likely the next resistance level.
The USDA will release its WASDE report later today, which will likely add some volatility to today’s trade. The USDA will also release all the crop flash sales that would have gone out absent the government shutdown, creating a heavy amount of data flowing at once.
SOYBEANS
January soybeans are up 1.50 cents at $11.48 ½. New crop November soybeans are up 1 cent at $11.22 ¾. Soybean oil is higher and reversed some of its weekly losses. Soybean meal is unchanged and holding onto Thursday’s gains.
Yesterday’s strong upside breakout in soybeans and soybean meal is positive. However, friendly numbers out of today’s report could still lead to profit-taking in a “buy the rumor, sell the fact” situation.
The long-awaited WASDE report is expected to show lower soybean yields today, though ending stocks are a larger question mark.
The White House hosted oil and biofuel groups yesterday to once again find some common ground on upcoming biofuel policy. Reuters said the meeting signals that the Trump administration could be nearing a final rule on the renewable volume obligations and how to reallocate recent blending waivers that were approved.
WHEAT
March Chicago wheat is up 4.25 cents at $5.56 ½. KC wheat is up 3.75 cents at $5.46 ¾. Spring wheat is up 3 cents at $5.86.
Futures finally traded with more gusto after posting moderate gains most of this week. March Chicago futures traded 0.25 cents lower on Thursday. Overnight trading brought more buyers amid geopolitical factors.
Bloomberg reported that a major drone strike hit Russia’s key grain and oil export terminal overnight, which could be providing some support for wheat. The extent of the damage has not yet been reported, but the strike comes at a time when Russian wheat exports have been improving.
India is considering resuming some wheat exports after more than three years of restrictions. Trade talks have appeared to bring a cozier attitude between the U.S. and India recently. Trump said he might cut tariffs on Indian goods at some point. Better relations could open the door for U.S. exporters to ship wheat to India.
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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.