U.S. corn gained 2.5 percent on overnight and soybeans gained almost 1 percent, with prices supported by concerns over a severe drought in Brazil and unseasonal rains in Argentina curbing global supplies. Wheat rose, although prices were capped by expectations of a bumper harvest of the U.S. winter crop.
Brazil’s economist raised their GDP outlook for next year to 1 percent from 0.85 percent. Just a month ago the projected outlook was 0.5 percent.
The USDA has cut its estimates for ending stocks as there is a strong demand for U.S. Products.
Gold hits its highest gain since May on Monday, being driven higher by a retreat in the dollar.
Weather in the midwest continues to look hot with a chance of rain to begin the week. NOAA has issued warnings of potential flash flooding and thunderstorms in the plains region for Monday. Over the weekend Brazil experienced frosts near the southern 10% of the corn crop resulting in isolated damage.
Crude oil prices are expected to continue lower, weighed down by gloomy economic prospects in Europe and Asia and the strengthening U.S. dollar. API estimates ethanol stocks to be lower again this week by as much as 3.56M.
The risk of trading futures, hedging and speculating can be substantial. Grain Hedge is a Branch of Foremost Trading LLC (NFA ID 0307930)
