Grains are lower at midday:
Mar Corn – 7 cents/bu (6.07 ¾ )
Jan Soybeans – 2 cents/bu (13.60 ½ )
Mar Chi Wheat – 20 cents/bu (7.84)
Cdn $ -0.00110 (78.025 cents)
WTI Crude Oil +0.56/barrel (76.13)
Wheat prices have been under pressure for the entire day trading session, as losses accumulate following yesterday’s negative technical price reversal. Global supplies of milling quality wheats remain tight, but the lack of export business out of the USA has led to commercial selling, which has turned wheat charts negative. Weakness in wheat today has spilled over to the corn market, and has allowed soybeans to come off of their highs as well.
We are in a full blown weather market, as it related to South American production. This morning, there were some showers added to the 6 t o10 day forecast for the driest parts of southern Brazil, and that has allowed for some selling to appreciate. Showers will help, but it has been hot and dry in southern Brazil and in most of Argentina, so rains will be needed short term and long term. The map below gives an overview of Brazilian production potential year to date. There is a LOT of good crop in Brazil, but overall crop size is getting smaller.
As we approach year end, it is important to recognize that there will be position squaring as we get to December 31st. That can lead to some major, and sometimes unpredictable market moves. We have rallied significantly thorough December, with excellent old crop and new crop bids available for all grains. It is never a mistake to lock in profitable prices!!