Grains and oilseeds are lower on Monday following last week’s holiday-shortened trade. The U.S. dollar is lower. Crude oil is higher. Stock futures are lower following last week’s gains.
CORN
Futures rallied off their recent lows last week, with March futures climbing back above the 200-day moving average. Short-term resistance is around $4.50.
The corn market continues to focus on strong export demand. Delayed export sales data continues to show strong sales prints throughout October, especially from Mexico.
Brazilian consultancy firm AgRural reported that the country’s summer corn planting was complete as of last week.
SOYBEANS
Soybean futures are off to a weaker start this morning after edging higher last week. Soybean oil price was stronger in the product markets, as gains were limited in soybean meal.
No additional soybean flash sales were reported for China this morning. Delayed export sales data released this morning showed that soybean export sales had been improving in October, but the lack of sales to China limited the buying.
Chinese soybean purchases will continue to be the focus, but as noted previously, China began buying U.S. soy outside of its typical window, which could challenge demand.
AgRural reported that Brazil’s soybean planting reached 89 percent complete as of last week. Progress was slightly behind the same week last year. Rainfall has improved in some areas, though isolated precipitation has been creating dry spots in primary growing areas.
WHEAT
Mixed trade dominated the wheat complex last week, with March Chicago futures finishing 1.25 cents lower from the previous week. The complex has seen limited upside over the past few weeks amid bearish production news.
U.S. export demand appears to be healthy yet, largely due to lower prices. The U.S. supply and demand balance sheet has been painting a more bearish picture due to higher production. Global wheat prices have attempted to stabilize over the past week.
Australia is expected to harvest its third-largest wheat crop on record this season despite early-season dryness. The country’s Department of Agriculture forecasts output at 35.6 MMT, up about 6 percent from the previous season.
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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.