Wheat and corn started the week in positive territory while beans were flat in overnight trade. In outside markets, crude oil gave up a $1 a barrel in overnight trade while the US dollar and equities were mostly quiet in the night session.
Argentina weekend rain was most significant from Cordoba and San Luis to northeastern Buenos Aires where 0.60 to 1.59 inches were recorded. Heavy rains are expected Monday across the interior north. But conditions across the nation’s crop areas will likely improve over time this week and next week.
Brazil remains very good for the bulk of its production region. A few areas of dryness will continue, but they will eventually receive rain and subsoil moisture should be sufficient to carry on normal crop development until better rain evolves. Rain in Tocantins, northeastern Goias and western Bahia later this week will bring some much needed relief to drying, but follow up rain will be very important to continue the improving trend.
On Friday, CFTC data showed managed funds cut corn short by 17K to -96K, soy long down 13K to +94K, wheat short down 5K to -104K. Thursday marks the next USDA crop report with wheat acres being of special interest. Analysts expect US winter wheat plantings to be off 2 million acres from 2016.
Oil fell by $1 a barrel on Monday as growing U.S. production outweighed optimism that many other producers were sticking to a deal to cut supplies in a bid to bolster the market. On Friday, Baker Hughes data showed an 8th week in a row of rising US rig counts.Rising exports from Iran also added to bearish sentiment. Iran has sold more than 13 million barrels of oil held on tankers at sea, capitalizing on its exemption from a global deal to cut production in order to regain market share and court new buyers.
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