September 20, 2017
Grain Marketing Specialist
Poor volume in the overnight, currently sitting at 3.49 on the Dec contract. Yesterday we traded as low as 3.46. We could test that old low of 3.44 but the uncertainty of harvest ahead of us I would expect that to be a strong support level. These early yield reports are better than expected and the funds seem to be comfortable with their short position. The funds were credited with selling 9,000 contracts in yesterday’s trading session. The 8 to 14 day forecast for the Midwest looks to be slightly below normal on temps, no concern for frost yet.
Beans: up 3
The USDA just announced a 132,000 MT sale to China for the marketing year 2017/2018 and 1,080,000 MT sale to an unknown destination of that 960,000 delivered 2017/2018 and 120,000 mt in 2018/2019. The November bean contract seems to be comfortable trading between the 200 DMA and the 100 DMA as it waits for a better idea on harvest across the country. Soybeans finding some support from soybean oil trading higher on account of biodiesel. South American bean harvest has started, but it has been dry and some farmers are waiting for moisture before planting.
Wheat: MPLS up 1 KC up 1
MPLS wheat could be trying to fill the gap from June 12th and 13th 6.07 to 6.14. Currently the market is trading at 6.19. The 200 DMA is providing support at 6.11. Australia and Argentina are big wheat exporters, both facing major issues. The Market waits the September 29th Small Grains report next week.