Corn is trading 3 cents higher this morning, soybeans are up 5 on September and unchanged on November, Chicago wheat is down 6 cents. S&P 500 futures are trading 11 points higher while crude oil is off 80 cents to 96.54 at 8:00 AM central time.
U.S. grains received spotty precipitation over the weekend, with parts of Iowa, Missouri and Illinois receiving 1-3 inches. The majority of the western grain belt received 0.20 – 0.60 inches of precipitation, which has helped to weaken November soybean futures this morning. China received 0.50 – 1.50 inches of much needed rain over night as most of the country continues to battle a severe drought. Weather over the weekend was generally supportive for growing conditions, and the USDA will receive their updated crop condition report today at 3:00 PM central time.
Corn has made a strong technical move over the last three trade sessions, moving above the 20 day moving average on the December contract. This has been the first close above the 20 day MA since May 9th and will be viewed as a strong technical indicator for fund and spec traders. This market is ripe for a short covering rally, and we still feel any bounce is a good opportunity to make catch up sales.
Today the Pro Farmer crop tour kicks off with 130 scouts surveying fields throughout Minnesota, South Dakota, Nebraska, Iowa, Illinois, Indiana and Ohio. Half the scouts will head to survey fields toward Columbus, Ohio and the other half of scouts will survey fields west to Sioux Falls, South Dakota.
This morning Jordan's state grain buyer issued a tender to purchase 100,000 metric tons of hard milling wheat. Wheat prices jumped on Friday after a Russian convoy was allegedly attacked in Eastern Ukraine. Details seem very unclear around this event, but the talk of such things marks an escalation of the situation.