In the overnight session corn continued trading lower finishing down 3 cents going into the morning pause. Soybeans which traded a 13 ¼ cent range last night, added 1 ¼ cents to the closing price on Friday, and wheat improved 1 ¼ cents as well. Soybeans had a particularly negative session on Friday, falling 33 cents with below average daily volume. Be wary of a bounce early in the session today as many traders are back from their Thanksgiving travels. However, a bounce in this morning’s trade session might be a good time to price soybeans if you are looking to lock in prices in the near-term.
Russia is introducing new regulations which would curb grain exports out of their country. With the Ruble declining and a bumper crop harvested last year, exports have been thriving, increasing around 30% over last year’s levels at this time. Now Russia is trying to take steps to ensure enough supply is available for domestic use. The Veterinary and Phytosanitary Surveillance Service (VPSS) introduced new regulations to check conditions of grain, storage facilities and machinery which will most likely result in declining grain exports. These measures will help to support U.S wheat prices.
Over the weekend there have been no major developments in South American weather. Saturday and Sunday provided Argentina with expected rains, but drier weather is expected out of the 6-10 day forecast. Brazil should continue to see the same levels of precipitation which should help seeding progress in their country. Brazil had been behind pace planting early on in the season due to excessive dryness.
