The grains traded lower Sunday evening with December corn down 1 ½ cents, November soybeans down 4 ¾ cents and December Chicago wheat down 2 ½ cents this morning. Weather this week looks to be mostly favorable with precipitation in the northern Midwest expected over the next two days and above average temperatures helping the drying process. The recent moisture in the panhandle of Texas has been favorable to winter wheat germination.
Brazilian weather looks to bring moisture to some dry fields into Parana by the weekend with more chances of showers in Northern Brazil. The increased chances of showers should help the planting pace which started mid- September and is lagging behind the normal pace. The forecast for precipitation in Brazil is expecting dryness to return in the 11-15 day period, but expects rains by mid-October.
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The most recent Cattle On Feed report was a bearish surprise to many traders and showed that more cattle were placed in August than expected. August placements were 103 percent of last year compared to the Reuters average trade guess which showed trader expectations averaged around 97.1 percent. All Cattle on Feed was 104 percent of a year ago. Marketings were mostly in line with expectations with the USDA reporting 106 percent of cattle marketed in August compared to the average trade guess of 105.8. The report on Friday was released after the market closed.
Corn imports into China continued to run strong in August with 380,000 metric tons imported. Although imports are down sharply from July, August's numbers representing a 14 times increase from last year when imports were reduced after China ended the state run stockpile program. Corn in China is mostly used to feed livestock.
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