Grains drifted lower overnight giving up most of the gains from Monday’s session. In outside markets, crude oil was sharply higher which bolstered S&P futures and sunk bonds.
This morning, USDA announced exporters sold 120,000 MT of soybeans for delivery to China in 2015/16. NOPA is due to release its monthly U.S. crush report at 11 a.m. CST. The average estimate for NOPA's November crush among analysts surveyed by Reuters was 161.663 million bushels (range 157.675 - 165.4 mln); NOPA reported the October crush at 158.895 million.
In South America, showers favored western Rio Grande do Sul, far southwest Parana, and western Santa Catarina in Brazil in the past day. Southern corn/soy areas remain favored throughout the rest of the month. While any flooding risks should remain fairly localized, the wet pattern will keep rust risks elevated for the southern 1/3 of soybean area. Argentina picked up scattered showers in central/southeast parts of Cordoba and Buenos Aires as well as northern Santa Fe and points north. While the outlook is not quite as wet, showers are likely to remain more than adequate to support most corn/soy, with drier spots for Buenos Aires wheat too late for notable yield impacts.
In outside markets, traders are awaiting the Fed announcement on Wednesday regarding interest rate changes. The bias is the Fed will raise rates following Wednesday’s announcement.
The risk of trading futures, hedging, and speculating can be substantial. Grain Hedge is a dba of Foremost Trading LLC (NFA ID: 0307930)
