Grain markets finished lower today giving back some of the gains from late last week and also a lack of fresh bullish news.
Grain Market News
Corn: Weekly Export Inspections
Corn exports remain disappointing at 18.5 million bushels which is below last year and well below the 45 needed to reach the USDA export forecast.
Year to date is down 21.5% versus the USDA expectation of 13%.
Soybeans: Weekly Export Inspections
Soybeans had a tremendous increase over the last few weeks.
Last week soybeans were at 106.1 million bushels which is near record large.
Half of them coming out of the gulf and the other half out of the pacific northwest.
Wheat: Weekly Export Inspections
Wheat came in at a marketing year low of 4.6 million bushels, in fact the lowest number we’ve seen over the last 6 years.
The good news is our wheat inspections were good in late July-September, therefore year to date inspections is only down .5% versus USDA down 3.1%.
Cattle on Feed
Cattle on feed came in at 11.449 which is down 1% from last year and the trade was expecting to be down 1%.
Grain Market News
South American Precipitation Forecast
Brazil looks good, well-placed moisture across most of the growing regions and no excessive rains.
Argentina could get some rain, nothing heavy, but anywhere from 2/10- to an inch.
In the second week Argentina has dry weather returning as well as much of Brazil.
South American weather will be a key factor for our markets for the next 3-4 months.
Here in the U.S., we have a cold front pushing through.
Today’s conditions in the 70s in the eastern belt, 30-40s in the plains, with rains moving northward through the central US.
7-Day Observed Precipitation
Apart from the rains around the lower great lakes area almost the entire U.S. corn and bean belt including the plains was completely dry.
This is bad news for the hard red winter wheat but good news to allow harvest to wrap up in the corn and beans.
30-Day Precipitation % of Normal
It has been extremely dry from September 24th to October 24th.
7-Day Precipitation Forecast
The bulk of this rain falling today through tomorrow and Wednesday.
December Corn Chart
Corn prices for the last 5 days have been stuck in a very narrow range chopping back and forth on either side of 6.80.
The market is waiting for fresh news, if we get bullish news then $7 is overhead resistance and bearish news we would have 6.50-6.60 is downside support.
November Soybean Chart
Soybean prices have been stuck in a sideways range over the past 3-4 months.
We had been in a downtrend during much of September into October but since then it has turned very choppy.
14.14 as overhead resistance and 13.50 as chart support.
December KC Wheat Chart
Wheat market has gotten extremely quiet and somewhat choppy day to day.
The market is waiting for fresh input to drive price direction.
Today and in fact for the last week that type of news has not been present.
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