Corn futures are holding steady at midday as the market weighs the supportive impact of a weakening U.S. Dollar against concerns over trade instability with key U.S. partners.
Significant rainfall is forecast across Corn Belt regions west of the Mississippi River over the next seven days, while Eastern Corn Belt areas are expected to receive minimal precipitation. A warming trend is also expected, helping to prepare fields for planting.
The U.S. Dollar Index has dropped sharply to start the week, falling to its lowest level in three years. Meanwhile, gold futures continue to surge, reaching new all-time highs above $3,400 per ounce.
Soybean futures are trading lower at midday Monday, pressured by U.S. economic concerns, a declining equities market, and persistent technical resistance within the soybean complex.
July soybean futures spent much of last week consolidating near the 200-day moving average, a historically significant resistance level for front-month soybeans over the past two years. Unless decisively broken, this level is expected to continue capping gains.
Ahead of Monday afternoon’s Crop Progress report, traders anticipate soybean planting progress to range between 10% and 12%, compared to the historical average pace of 7%.
Wheat futures are slightly lower across all three classes to start the week, despite continued weakness in the U.S. Dollar.
Beneficial rainfall fell across much of the Plains over the weekend, with additional moisture expected in the coming days. This should support improvements in crop condition ratings in upcoming weekly progress reports.
Despite concerns over winter dryness, Russian wheat conditions are reported to be 90% good to satisfactory. Consultancy SovEcon raised its Russian wheat production estimate by 1.1 million metric tons to 79.7 million metric tons.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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