Monday Morning Comments (9/25) Corn futures traded weaker the majority of the day but closed a touch higher. December futures have been trading between $3.62 & $3.44 ¼ since Aug. 31st. At this point, it looks like it will take a rally above resistance at $3.62 or a selloff below support at $3.44 ¼ to signal the start of a new trend move. The fact U.S. corn harvest is slowly picking up and introducing new supplies into an already oversupplied market hangs over futures. Traders look for an increase in corn harvest progress this week due to the unseasonably warm temperatures seen over the past 7 days. In this afternoon’s USDA’s weekly crop progress & condition reports, the trade expects to see U.S. corn harvest near 14% complete. Conditions look to remain favorable for harvest activity across much of the Midwest the next two weeks with limited rainfall and average to near average temperatures expected for most of the Midwest.
Soybean futures traded lower today. As of midday, funds were estimated to have sold approximately 6,000 contracts of beans. An uptick in harvest activity across parts of the Midwest combined with a more favorable South American weather outlook weighed on prices. Thunderstorms are expected to improve moisture levels in parts of Brazil which should help soybean planting progress there. In the U.S., spotty rains are forecast for the Midwest early to mid-week, with dry weather then expected to dominate the region the balance of the week and next weekend. This should be conducive for harvest activity. This afternoon will bring the USDA’s updated crop progress & condition reports. The trade will be looking to the harvest progress number for direction, which is expected to come in near 11% complete. A lack of new bean sales is also hanging over the market. Although, China is off on holiday. Weekly U.S. soybean export inspections were solid this morning at 37.8 mln. bu. For the respective crop year to date, bean inspections are up 28 mln. bu. or 33% from this time last year.
7-day precip forecast (Sept 25-Oct 2)
Comments from Mid-Co Commodities
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