The EU weather model has turned a little bit more wet, offering some resistance to the grain complex. However, parts of Wisconsin, Illinois, Iowa, and Indiana still look mostly dry on that model.
At today’s FOMC meeting the Fed may raise interest rates by 25 basis points. There is some speculation that they will pause the rate increase, however, especially after CPI data showed some easing of inflation.
Yesterday, December corn rallied but found resistance at the 100-day moving average. Currently at midday it is trading below that average, which is around 5.56.
There is reportedly another frost risk for Brazil, but so far there is no indication of harm to their corn crop. They are still looking for record corn production at this time.
Soybean export premiums in Brazil continue to be on the decline. As long as they have enough supply, this may reduce the amount of US soybeans sold.
China may issue a stimulus package to help their economy. This offers some hope that their economy will improve and help commodity prices. It remains to be seen if this is just a “band-aid” to cover bigger issues, though.
July soybean oil gained 1.45 cents yesterday, with support from higher crude oil, as well as world vegetable oils.
July soybeans on China’s Dalian Exchange are around the equivalent of $15.45 per bushel (and near a 1-month high).
This year’s US winter wheat harvest may be one of the smallest in 50 years due to poor growing conditions in the southern Plains.
Dry conditions in western Canada’s wheat growing regions may get some relief with chances of rain for Alberta and Saskatchewan in the coming days.
Low Russian export prices are pressuring the wheat complex, and the EU is also exporting record amounts of wheat, offering resistance as well.
Soil moisture in Argentina is not optimal, and frost / freezing conditions over the next few days could slow germination for their winter wheat.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed. This material has been prepared by a sales or trading employee or agent of Total Farm Marketing by Stewart-Peterson and is, or is in the nature of, a solicitation. Any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to Stewart-Peterson Inc. Reproduction of this information without prior written permission is prohibited. Hypothetical performance results have many inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. The data contained herein is believed to be drawn from reliable sources but cannot be guaranteed. Reproduction and distribution of this information without prior written permission is prohibited. This material has been prepared by a sales or trading employee or agent of Total Farm Marketing and is, or is in the nature of, a solicitation. Any decisions you may make to buy, sell or hold a position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to Total Farm Marketing.
Stewart-Peterson Inc., Stewart-Peterson Group Inc., and SP Risk Services LLC are each part of the family of companies within Total Farm Marketing (TFM). Stewart-Peterson Inc. is a publishing company. Stewart-Peterson Group Inc. is registered with the Commodity Futures Trading Commission (CFTC) as an introducing broker and is a member of National Futures Association. SP Risk Services LLC is an insurance agency. A customer may have relationships with any or all three companies.
