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Grain prices held mostly steady Monday night and Tuesday morning with limited news to drive prices off their strong close from Monday’s session.
USDA reported a slightly lower than expected winter wheat crop condition on Monday afternoon. According to their weekly Crop Progress report, USDA pegs 34% in good to excellent condition, below analysts' expectations of 35% and last week’s estimate of 36%. The ratings are a record low for November and should keep a bullish undertone to new crop futures prices.
On the export front, traders still look for wheat export business to return to the U.S. with Ukraine and other Black Sea markets running out of wheat, and a recent run-up in the Euro making French wheat less favorable.
In the corn market, prices remain mostly unchanged around the $7.40 benchmark. Monday’s export inspections for the week of 14 mb were at the upper end of trade expectations, but still a sharp distinct from previous years when totals of 50 mb or more were common. For soybeans, export inspections of 63 mb were above trade guesstimates and continue to suggest higher exports than what USDA has factored in.
Grain markets should continue to be range bound in this holiday shortened week. Corn and wheat continue to look for signs of any significant demand news, which has mostly been limited in recent months. This must be what demand destruction looks like! For soybeans, eyes continue to be focused on South America weather and any potential hint of business from China on soybeans. Until we get some surprises one way or the other, markets may continue to hold their ground.
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