- Markets trading lower overnight in a quiet trade with corn, beans, and wheat all three finishing off the overnight lows.
- November option expiration on Friday may lead to corn/beans/wheat seeking out strike prices to settle at.
- China announced they would ban the feeding of kitchen waste to hogs to try to limit spread of swine flu.
- Cash markets seeing some moves yesterday with Decatur, IL corn basis moving 20 cents higher to option price.
- US sales of beans to China remain sluggish with China booking anything and everything they can out of Brazil.
- The Russian Ag Ministry is meeting with wheat exporters on Friday, which could lead to some fireworks on any sign that they could slow sales out of the country.
- Corn technically is finding support in the 3.65-3.70 area with resistance above the market near 3.75. Stochastics are correcting from oversold.
- Beans are stuck in their range with moving average support at 8.55 and resistance in the mid-8.60’s.
- Wheat technically is testing long-term support with more downside risk if Dec. wheat drops below 5.00
- Brazil remains wet over the next couple weeks to allow their crops to get off to a good start.
- US harvest likely to slow later this week with chances in the 6-10 period as well.
- Corn has successfully held above support in the previous resistance area of 3.65-3.70. With the tightening global corn supply situation, look for buyers to continue to show up there as the managed money crowd is moving into corn.
- Beans don’t have anything supportive at the moment as the US can’t sell anything to China. The market is stuck in its range with a move higher in corn needed or a trade deal with China for beans to have a chance at rallying.
- Wheat is testing critical support with a drop below $5.00 something the bulls don’t want to see.
Fun Fact of the Day: The movie Die Hard tried to recruit several Hollywood A-listers like Sylvester Stallone, Burt Reynolds, Clint Eastwood, Harrison Ford, and Doc Johnson to play John McClane, but after a series of rejections they made the surprise choice to accept Bruce Willis, who at the time was far from their first choice.