In the overnight session the grains are trading higher with December corn up 1 cent, January soybeans up 1 ¾ cents and wheat up 3 ½ cents.
Exporters sell 130,000 MT of Corn for delivery to unknown destinations during the 2017/2018 marketing year-USDA
Temperatures are expected to continue being cooler than normal throughout the majority of the grain belt in the 6-10 day forecast. The precipitation is expected to be drier than normal across the Midwest except for northern Minnesota and Wisconsin. The market will be looking to the USDA Supply and Demand report which is scheduled for release on Thursday this week. Early expectations for the report are for corn yield to be moved higher and for soybean yield to be revised lower.
The wheat market is trading higher on short covering this morning and some positive news that Iraq has purchased 500,000 metric tons of U.S. wheat. Cargill will supply 300,000 metric tons, ADM will supply 150,000 metric tons and another undisclosed firm will supply 50,000 metric tons. Weather in eastern Australia continues to worsen as hot dry weather continues to threaten further deterioration in the wheat production.
The cash market is showing some signs of rebounding from harvest lows with the national basis average increasing 1 cent for corn and 3 cents for Soybeans. Barge rates have declined to seasonally normal levels allowing river terminals to improve bids this week between 5-10 cents for corn and 10-15 cents for soybeans. Soybean plants also increased their bids this week, jumping 5 cents on average across the U.S.
The risk of trading futures, hedging, and speculating can be substantial. Grain Hedge is a Branch of Foremost Trading LLC (NFA ID: 0307930)
