- Markets trading mixed overnight in another quiet trade going into today’s November option expiration.
- Out of the gates, corn is down 1.5 cents, soybeans down 1 cent and wheat down 2.5 cents.
- Greatest corn option open interest is at $3.40 puts and $3.50 calls. Greatest soybean OI is still at $9.60 on the puts, and call OI is now greatest also at $9.60 but doubt we pin that strike today.
- No major changes to the weather.
- Corn technically continues to struggle to move from $3.50 with support at $3.495 and resistance $3.52 ½
- Soybeans have corrected off their highs, but are still in their up-trend. Support at 9.70 and resistance at 9.80.
- Wheat remains range-bound with support at 4.30 and resistance 4.40.
- USDA reported 238,000 MT of soybeans to China for 2017/18.
- USDA reported 132,000 MT of corn to Spain for 2017/18.
- Brazil rains expected to hit dry areas over the next couple of weeks.
- Argentina is wetter late next week, which will keep planting somewhat slow.
- US weather is pretty dry until the 11-15 period to allow harvest to resume.
- Overall, no major changes to affect the market.
- Corn continues to drift sideways with no catalyst to push it out of this range. Look for that to continue until we get past the 50% mark on harvest. I still think there is potential for December futures to trade up to 3.70 before expiration.
- Soybeans are correcting, but the trend is higher. Yields are starting to disappoint as harvest winds down. With producers heavily sold, I think beans could have a good market this year with any production hiccups in South America.
- Wheat is the same as corn. Range-bound.
Fun Fact of the Day: The concentration of salt in seawater (salinity) is about 35 parts per thousand. Stated in another way, about 3.5 percent of the weight of seawater comes from the dissolved salts; in a cubic mile of seawater, the weight of the salt (in the form of sodium chloride) would be about 120 million tons.