- Markets trading with small losses overnight in a quiet trade.
- Dry spots in Argentina are staying dry for the next couple of weeks.
- Crop progress showed corn harvest 90% complete vs. 95% average. Soybean harvest is 96% complete vs. 97% average.
- Winter wheat rated 52% good-to-excellent, which was down 2% from last week.
- Cash corn markets remain firm, as movement is slow.
- The Dec./March corn spread has made a strong (narrower) move going into FND (first notice day).
- Cash beans soft with calendar spreads lower yesterday in spite of the big recovery off the lows.
- Equity futures trading within a few points of all-time highs again.
- Corn technically recovered to test moving average resistance at 3.45 yesterday before pulling back overnight. The market is a slightly overbought with support at 3.40 and resistance 3.45.
- Soybeans technically are trading right at the middle of the range we have seen for the last several months. Support is at 9.80 and resistance 10.00.
- Wheat remains range-bound with support at 4.20 and resistance 4.30.
- USDA reported 130,000 MT of soybeans to China for 2017/18.
- Brazil still seen catching rains to keep things in good shape over the next week.
- A third of Argentina stays dry over the next couple of weeks, but temperatures run below normal.
- Corn is about 7 cents off its recent lows. As long as the cash market does not falter, I think futures can probably add another 20 cents on short-covering, which would put futures in the 3.60’s. Keep an eye on spreads and changes in the cash market to signal the rally may be running out of steam.
- Soybeans do not have support from a strong cash market helping them, but they do have the dryness in Argentina. I think they are vulnerable to more downside due to the weakness in the cash, but that can change quickly.
- Wheat remains stuck in its range with no reason for that to change.
Fun Fact of the Day: The average person has about 3 to 5 dreams per night, but some may have up to 7 dreams in one night. The dreams tend to last longer as the night progresses. During a full 8-hour night sleep, two hours of it is spent dreaming. It is not at all unusual for a person to have more than one dream per night.