- Markets trading mostly higher overnight in a pretty quiet trade as we look forward to stocks/acres on Thursday. Estimates will be sent out later this morning.
- Wheat ratings yesterday had KS wheat rated 13% g/e, which was up 2. OK was 9% g/e, up 4.
- Equity markets traded sharply higher Monday on improved talks between China and the US on trade.
- Brazil bean yields continue to come in very strong.
- Corn technically seeing consolidation in the mid-3.70s, which is where we could stay until we see the numbers on Thursday.
- Beans technically see consolidation near 10.30 with the market lacking follow-through the last two days.
- Wheat technically consolidating in the mid-4.50’s as the market is getting mixed fundamental signals.
- US winter wheat still dry in key growing areas in KS for the next couple weeks.
- Argentina has chances for rains in western areas in the 6-10.
- Brazil looks to catch scattered rains over the next couple weeks.
- As long as the market doesn’t get an overly bearish corn acre number on Friday, I think prices will work higher from this area. US and world stocks are headed lower right now, demand remains strong, and there is risk that the US won’t raise another record national yield this year. Look for buyers to support the market on pull-backs, although moves between now and 11 am Thursday are unlikely to see follow through.
- Beans have seen big swings the last two days, and I look for 10.30 to be a magnet until we get the acre number on Thursday. With Argentine production ideas continuing to work lower, the bean outlook is not as bearish as was feared, but beans probably need a move higher in corn to have much of a chance of rallying from here.
- Wheat will probably have a bearish stocks number on Thursday, but as long as the recent lows hold, I look for prices to work higher over time.
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