- Markets trading mostly lower overnight in a quiet trade.
- Weather is lacking major changes with Northern Brazil still drier than ideal.
- CFTC report on Friday showed managed funds as net sellers of 20k corn to push the net short to 163k, net buyers of 3k beans to push the net long to 31k, and net sellers of 11k wheat to push the net short out to 68k. Nothing was too surprising there.
- Harvest progress expected to be 30% for corn and 50% for beans today.
- Corn technically put in a bullish reversal last week with support at the 20 DMA at 3.50 ¾ and resistance at 3.57.
- Soybeans technically continue to see higher highs and higher lows. The market is overbought, so a correction to support near 9.80 is possible.
- Wheat remains range-bound but correcting from oversold conditions.
- USDA reported 227,300 MT of soybeans to unknown for 2017/18.
- Brazil weather similar to going home Friday with northern areas dry before chances seen later in the month.
- Argentina has better chances for rains this week but then sees some needed drying.
- Open week for US harvest before things slow in the 6-10. The 11-15 is dry again, though.
- Corn is still lacking a catalyst to push the market out of this range EXCEPT for a move in soybeans. If soybeans go higher, they can pull corn along. If the bean rally falters, corn likely remains stuck in the recent range.
- Soybeans had a good week last week for the bulls. Demand is strong and the market is well below levels that would cause demand to slow. Funds are buying, and if a weather issue develops in Brazil, there could be quite a bit of upside potential. In the near-term, though, harvest pressure may slow this move.
- Wheat is stuck in a range. Look for corn to pull it.
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