11/13/17

Morning Bullet Points - 11/13/2017

GOOD MORNING—

MARKET HIGHLIGHTS

  • Markets trading lower overnight in a quiet trade with no new concerns with the South American weather outlook.
  • The CFTC report will be out this afternoon with expectations for new fund selling to show up in corn and wheat.
  • China reportedly booked 15 cargoes of soybeans last week.
  • Cash grain market still showing some signs of firmness.
  • Corn technically testing support at the recent lows near 3.40.  Resistance at 3.45.
  • Soybeans technically violating the bottom end of their upward sloping channel.  Support at 9.30 and resistance 9.90.
  • Wheat technically range-bound with support at 4.20 and resistance 4.30.
  • USDA reported 135,000 MT of soybean meal to the Philippines for 2017/18.

WEATHER             

  • Northern Brazil caught rains over the weekend with more expected this weekend/next week.
  • Argentine weather is dry to allow planting progress.
  • Overall, no new problems in South America.

OUTLOOK

  • No big problems in South America now will keep buyers in the soybean market at bay.
  • Corn has large supplies, and unless the carry starts to come out of the market, will have a hard time finding buyers.  If there is a reason to rally, the managed fund short is huge and needs to be rolled out of the December 2017 contract in the next couple weeks.
  • Soybeans will likely follow South American weather developments, and for the time being, there are no problems.
  • Wheat likely follows corn.

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