Grains were modestly higher overnight with soybeans trying to lead a feeble recovery on a 2 cent advance. In outside markets, S&P futures and crude oil put up slight advances in the night session.
In grain markets, there was little fresh news on Tuesday to change the course of trading. Grain prices continued to be weighed down by ample supplies not only in the US, but in global warehouses as well. Also, the US dollar continues to show signs of moving higher after a month of nearly vertical increases. The US dollar index is up 6% in the past month, which weighs heavily on US grain prices which depend on export business to foreign countries.
In weather, areas of the world where weather was of concern have since given way to an improved growing condition. The Former Soviet Union is expected to see warm and wet weather in the next week should aid the winter wheat crop there, while precipitation expected across the US Plains this week should also be beneficial for US wheat development. Likewise, in Brazil an increasingly wet pattern should continue to bolster the summer crop prospects of our biggest competitor in the global soybean market.
S&P futures (ESZ5) were little changed on Wednesday as investors remained cautious after a shootout between French police and militants in Paris and a bomb scare at a German soccer match. Investors are also awaiting the minutes of the Federal Reserve's policy meeting last month. The minutes will be analyzed for clues on the central bank's reading of the economy. The Fed is widely expected to raise interest rates at its December meeting. U.S. stocks forfeited gains on Tuesday after a soccer match between Germany and the Netherlands, which German Chancellor Angela Merkel was due to attend, was called off over fears of a bombing.
Crude oil futures (GCLZ5 / QMZ5) rose on Wednesday on reports of falling stockpiles and rising refinery activity in the United States. The American Petroleum Institute (API), an industry group, said on Tuesday that U.S. crude stockpiles fell last week by 482,000 barrels due partly to higher refinery runs. Official inventory data is due from the U.S. government's Energy Information Administration (EIA) today, with a poll of eight analysts predicting a crude stock build of 1.9 million barrels on average in the week ended Nov. 13.
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