Lower $ shouldn't impact grains
A slightly lower start is expected this am, 1 in wheat, 1-2 in corn and 4-5 in beans. The $ is slightly higher but probably not enough to influence grains significantly. Yesterday the $ was very weak but the grains still sold off and ended lower. The grains have divorced themselves repeatedly from the $'s influence lately so a slightly lower $ this am shouldn't impact the grains much either way.
Farmers took advantage of recent big gains in corn and beans yesterday by selling increased amounts of cash grain. This, coupled with the relative lack of large scale, aggressive fund buying caused prices to give up early gains and sell off sharply from the early highs by the close. Some followthrough selling could be seen this am due to the lack of any other significant market moving news.
Deliveries totaled 4600 wheat to Dec 1, 481 corn to Oct 22, 775 oil to Nov 30 and 296 oats to Nov 20. JP Morgan, probably acting for Cargill, put out 412 of the 1028 corn they took delivery of yesterday.
Stats Canada will put out their Dec production estimates tomorrow am. Traders look for all wheat production of 25.6 million tonnes vs 24.6 million on Oct 2; durum wheat 5.3 million vs 5.1; oats 3.1 million vs 2.9; canola 10.8 million vs 10.3 and barley 9.3 million vs 9.2.
Argentina was generally dry yesterday with light, widely scattered showers possible today and again Saturday. More rain would be welcome in all the main Argentine growing areas but only light, scattered rain is likely over the next week or so. Brazil remains in good shape with the exception of Rio Grande state in the south, where too much rain has fallen. Up to 1" of unwanted rain is forecast in Rio Grande today, after which dry weather is forecast (and welcome) for several days.
The midwest was dry the last 24 hours. The west will stay dry today into early next week. The east will see up to .5" of moisture today-tomorrow before dry weather returns Friday into early next week. The 6-10 day predicts below normal precipitation in the northwest, above normal in the southeast. Generally favorable conditions continue in the southwest winter wheat belt.
Farmers took advantage of recent big gains in corn and beans yesterday by selling increased amounts of cash grain. This, coupled with the relative lack of large scale, aggressive fund buying caused prices to give up early gains and sell off sharply from the early highs by the close. Some followthrough selling could be seen this am due to the lack of any other significant market moving news.
Deliveries totaled 4600 wheat to Dec 1, 481 corn to Oct 22, 775 oil to Nov 30 and 296 oats to Nov 20. JP Morgan, probably acting for Cargill, put out 412 of the 1028 corn they took delivery of yesterday.
Stats Canada will put out their Dec production estimates tomorrow am. Traders look for all wheat production of 25.6 million tonnes vs 24.6 million on Oct 2; durum wheat 5.3 million vs 5.1; oats 3.1 million vs 2.9; canola 10.8 million vs 10.3 and barley 9.3 million vs 9.2.
Argentina was generally dry yesterday with light, widely scattered showers possible today and again Saturday. More rain would be welcome in all the main Argentine growing areas but only light, scattered rain is likely over the next week or so. Brazil remains in good shape with the exception of Rio Grande state in the south, where too much rain has fallen. Up to 1" of unwanted rain is forecast in Rio Grande today, after which dry weather is forecast (and welcome) for several days.
The midwest was dry the last 24 hours. The west will stay dry today into early next week. The east will see up to .5" of moisture today-tomorrow before dry weather returns Friday into early next week. The 6-10 day predicts below normal precipitation in the northwest, above normal in the southeast. Generally favorable conditions continue in the southwest winter wheat belt.
posted by InsightPublishing at
8:33 AM
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