In the overnight session the grains traded higher with March corn up 1 3/4 cents, March soybeans up 15 cents, March Chicago Wheat up 4 cents and Kansas City wheat trading up 3 3/4 cents this morning. The market is continuing its move higher on dryness in Argentina and excessive rains in Brazil.
Rains over the weekend were less than expected in Argentina with only 25 percent of the corn and soybean growing regions receiving measurable precipitation. Buenos Aires received 1 to 2 inches and some lighter rains also occurred far to the north. It is estimated that 65 percent of the crop is experiencing moisture stress and that area is only expected to grow by the end of the week. Temperatures are supposed to climb into the lower 90’s by the end of the week and the forecast shows the best chance for rains for the middle of next week.
The Brazilian Agricultural Consultancy Ag Rural reported that soybean harvest in Brazil is 17 percent complete compared to 26 percent during the same period last year. Mato Grosso soybean harvest is ahead of last year while Parana is well behind last year’s pace.
Rains missed the majority of Kansas this weekend with only some parts of Southeast Kansas receiving moisture. Oklahoma received between around a half an inch with the best accumulation in the northwest part of the state. Temperatures are expected to be cold in the Northern Plains down into Nebraska and Kansas until the end of the week. Kansas snow cover is thin to gone with temperatures forecast below freezing until Thursday.
The national average spot corn basis increased last week by .4 cents while soybean basis slipped by .9 cents. River markets lowered their soybean basis by an average of 4 cents a bushel while crush facilities backed off 2.3 cents. Ethanol facilities were unchanged on the week and corn basis at the river was off an average of .8 cents.
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