Grain futures continued their recovery in the night session as heavy rains and declining crop conditions have the markets moving higher. Corn was up 3 cents a bushel while wheat and corn are up 6 cents a bushel.
In wheat, heavy rains from Tropical Storm Bill will push through Eastern OK/TX over the next few days. While this is not in the path of the major HRW wheat belt, the rains should eventually find their way to SRW wheat territory of IL/IN/MO. In export news, Taiwan bought 97,420 MT of US wheat and the market is waiting to see the outcome of the Japanese wheat tender expected to be announced in the next day.
For soybeans, new-crop November futures posted its largest daily gain since February closing up 23 cents. It continued higher in the overnight session but met some selling pressure going into the break. Although planting delays are a moderate concern, excess moisture at this time of year may not be a catalyst for a sustained rally. This year is still expected to be another year of record production and acreage so any slip in acres would likely be muted by the beneficial soil moisture for much of the country.
In corn, prices moved higher on Tuesday and in the overnight session but the gains are rather tepid. The one bright spot of late has been two large purchases announced by USDA on Monday and Tuesday morning which showed over 100,000 MT booked for new-crop delivery by Japan and over 100,000 MT booked for old-crop delivery by unknown destinations.
