Grains and oilseeds are steady to higher on Tuesday following the overnight session. The U.S. dollar is lower. Crude oil is steady after surging yesterday. Stock futures are lower but have posted a recent recovery.
CORN
March corn futures continued to push to the upper end of the trading range on Monday, trading 3.25 cents higher to $4.47. Prices held onto those gains in the overnight session but stopped short of the $4.50 resistance area. Lighter holiday trade this week could keep prices rangebound.
Corn continues to have a strong demand story. The U.S. dollar pulled back to the lowest level since early October, which helps keep exports competitive on the global stage. U.S. corn remains cheap relative to other major exporters.
Catch-up export sales data showed another strong week of corn sales during the week ending Dec. 11. Japan was the top buyer for the week, with large volumes also purchased from key buyers South Korea and Mexico.
Total export sales and commitments continued to run at a record pace as buyers flock to relatively cheap U.S. supplies.
SOYBEANS
March soybean futures finally paused their recent selling, after trading 5.50 cents higher on Monday to close at $10.65 a bushel. Higher trade this week would end three weeks of losses after a strong round of speculative long liquidation.
Catch-up data for the USDA’s export sales report this week showed stronger soybean sales for the week ending Dec. 11. Sales jumped to a marketing-year high of 2.42 MMT, with China scooping up more than half of that. That brings confirmed sales to China for the season to 6.27 MMT, 52 percent of the 12 MMT target.
U.S. soybean export prices to China remain higher than Brazil prices, according to Barchart.
Favorable South American weather will likely hold weight over the soybean complex as farmers begin harvesting soybeans in Brazil.
WHEAT
March Chicago wheat futures extended their bounce from recent contract lows after trading 5.75 cents higher on Monday to close at $5.15 ½. Slightly speculative short-covering likely drove the gains as suggested by lower open interest and volume for the day.
Light holiday trade could help trigger additional short covering this week, though fundamentals remain bearish.
Temperatures are expected to climb well above average this week and hit a record high for Christmas day. Additionally, winter wheat areas have been trending drier this month amid a lack of precipitation.
Meanwhile, cold snaps are expected to hit parts of Southwest Russia in the near term, though snow cover could limit some risks.
Russia escalated its drone attacks against Ukrainian ports facilities this week, which could cause crop export disruptions. The recent attack damaged a civilian vessel carrying Ukrainian soybeans.
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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.