Grains were mixed overnight with wheat posting the biggest gains, advancing 6 cents overnight while corn was fractionally higher. Soybeans gave up 3 cents in the night session. In outside markets, stock index futures were mildly weaker while crude oil showed a small advance.
Wheat was buoyed by missed rain forecasts in the Plains. While Texas is likely to see significant precipitation over the next week, areas to the North are not. Dry weather also is persisting in Russia. In international deals, overnight Ethiopia announced it was tendering for 1 MMT. The deal is expected to go to Black Sea or EU markets.
In corn and beans, remnants of Hurricane Patricia are expected to hit the Midwest in coming days which could slow the tail end of the harvest season. The path is projected to put rains of 2 to 4 inches in the Mississippi River and Ohio River regions. USDA will announce the latest harvest progress numbers after the close of trade today. Last week corn was 59% harvested while soybeans stood at 77% harvested.
Global markets are mixed, with some green being seen in Asia, and Europe modestly lower. After a major rally at the end of last week, S&P index futures (ESZ5) are taking a breather on Monday morning, down about 0.15%.The FOMC meets this week, with very few expecting the central bank to hike rates.
Crude oil (GCZ5 / QMZ5) were modestly higher in night trade but still below $45 a barrel. Goldman Sachs said crude oil prices could drop sharply lower as refined product storage sites come close to maximum capacity, further adding to a glut that has already seen crude prices fall by more than half since June 2014. Goldman said that inventories were already "too close for comfort", bearing the potential for a sharp fall in crude prices.
