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It is a bit challenging to define exactly why the grain and soy markets found additional buying yesterday, but we have now lifted corn to the highest point traded in a month and beans to highest mark since the 23rdof August. Yes, there are residual good feelings about the USMCA, and wet weather has created some harvest slowdown but weighed against (no pun intended) a very large crop soon to be in the bin, it would not seem reason enough to stimulate much buying. Hedge pressure has not been significant to date, but that is not unexpected as producers will do all they can at this point to fill space and there was a story published that the Russia Ag safety agency has found violations at several export loading sites and have threatened to suspend operations, but that would be primarily a wheat story, which did rally yesterday but with little follow-through. This bring me back to the point I have made several times recently, that markets are not reacting to news as you would expect. Generally, that is the type of sign you look for when an overall change of trend is developing.
Providing a little extra incentive this morning was another solid export sales announcement with Japan purchasing 230,000 MT. We should see another good weekly sales report tomorrow morning, and if you recall, that was the impetus that appeared to get the corn bulls excited, or at least the bears uncomfortable last week.
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