In the overnight session the grains traded sharply lower with corn down 10 1/2 cents this morning, soybeans down 13 cents this morning and wheat down 5 1/2 cents this morning for the December contracts. The U.S. Dollar is trading over 1/2 a percent lower and crude oil is also lower, losing 80 cents this morning.
December corn gapped lower this morning opening at $3.99 after closing on Friday at $4.02. It will be important to pay close attention to the close of today’s session since there are many levels of support that cross at $3.98 including the 62 percent retracement, the 100 day moving average and a trend. A rebound this morning with a close above $3.98 could signal a short term bottom in prices.
The crop progress report will be released at 3 PM CST tonight and will be followed closely by traders. Expectations are for corn and soybeans to be mostly unchanged to 1-2 points higher. Last week corn was rated around 69 percent rated good-to-excellent and soybeans around 62 percent rated good-to-excellent.
On Friday the Canadian Wheat board tour forecast a significant year over year decline in yields for Canadian crops. The tours forecast pegs Canada’s spring wheat yield at 38.9 bushels per acre compared to 45.7 bushels per acre last year. Durum yield is forecast to be around 27.8 bushels per acre vs 40.9 bushels per acre last year and Canola yield is pegged at 29.3 bushels per acre compared to 34.4 bushels per acre last year.
This morning Jordan’s state grain buyer issued a couple tenders this morning for 70,000 metric tons of corn and another tender to purchase 100,000 metric tons of wheat.
