- Markets trading mixed overnight with the bean/wheat spreaders active again.
- Crop progress yesterday was lacking of any major surprises with corn ratings steady and bean ratings up 1. Harvest was a little behind expectations with corn 11% complete and soybeans 10%.
- Weather viewed as better with dry Brazil expected to get rain and wet Argentina expected to dry out a bit.
- Interior cash grain markets feeling some pressure as US corn/soybean harvest ramps up.
- Quarterly stocks will be out Friday, which show Sep. 1 corn/soybean stocks at the highest levels in years. Estimates will be out later this morning.
- Corn technically continues to struggle to push above the 20 DMA, which is at 3.53 ½ today. The trend is lower, but a push through that support would be viewed as supportive. Support at 3.50.
- Soybeans technically are at the middle of the year’s trading range with resistance at 9.80 and support at 9.62.
- Wheat trending higher with support at 4.42 and resistance at 4.63.
- Brazil still seen catching needed rains over the next week.
- Argentina is seen drier, which should allow planting to pick up.
- Australia continues to be dry with wheat production expected to drop.
- US winter wheat areas expected to catch some rain over the next few days.
- No major changes in the outlook with corn yields continuing to exceed expectations. The trend is lower until it is not. The 20 DMA is a place to sell against. Big carries suggest we may not have put in a harvest low yet.
- Soybeans pulled back to start the week. Yields have been good. The market has been making higher highs and higher lows since mid-August. Nov. needs to hold above last week’s low of 9.58 ½.
- Wheat looks pretty good technically as the seasonal where wheat gains on corn/soybeans working.