CORN: 6 higher
We are back to playing the South American weather game again this morning. Rains over the week-end were termed “disappointing” and although there is rain in the forecast for later this week all we needed to push the grains higher in the overnight trade were those disappointing week-end rains. In the next few days Argentina and southern Brazil are expected to get anywhere from a quarter inch to a full inch of much needed moisture. The rains are expected to be widespread with 75 – 85% of the above mentioned area receiving moisture. The other tid bit that should help propel us to a higher opening this morning is the news that China bought corn from the USA last week. The Chinese demand for corn could be virtually insatiable so news that business is coming our way has to be viewed as bullish.
SOYBEANS: 15 higher
The drought in Argentina and southern Brazil is obviously a major story in the bean market as well. What I find interesting is that they are trying to harvest beans now in northern Brazil and are having a tough go of it as rains have been delaying harvest. This in turn has prevented beans from reaching the ports in the number that would be expected this time of year. Net result appears to be a little better demand for USA beans. I suspect it is a short lived phenomenon but I am willing to accept anything that helps our cause.
WHEAT: 5 higher
There is very little news in the wheat market this morning. The major news that I can see is that some portions of HRW country good some snow cover which may prove to be beneficial. Wheat has been in a symbiotic relationship with corn and thus I suspect will continue to be pulled higher. On a totally unrelated note, having used the word symbiotic I now need to call my high school biology teacher and apologize for being wrong when I told him I would never use any of the garbage he was trying to make me learn.