Grains dipped lower overnight while crude oil and equities were in positive territory to start the day.
After finding a one-month high yesterday, soybeans turned lower as active farmer selling yesterday kept basis levels softening. Corn tried for the 4th time in two months to clear the $3.42 area in yesterday’s trade but settled below the $3.40 mark and is off further today.
Morocco's grain agency, ONICL, said on Wednesday it had bought 235,000 MT of U.S. soft wheat under a preferential tariff agreement. Earlier this month, ONICL launched a tender to buy 300,000 tonnes of U.S. soft wheat, 300,000 tonnes of EU soft and 45,000 of EU durum, with shipments that should arrive at Moroccan ports by Dec. 31. The North African kingdom has agreements with the United States and the European Union to import certain types of grain at preferential tariffs, with volumes depending on the size of the local harvest.
Investors will watch the U.S. Federal Reserve policy decision later on Wednesday. Expectations of a rate increase have all but evaporated after some weak economic data. The Fed is expected to keep rates unchanged, but may signal year-end hike. The Fed's rate-setting committee will release its policy statement at 1 p.m. CDT. Fed Chair Janet Yellen is scheduled to hold her quarterly press conference half an hour later.
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