Grains are slightly higher in overnight trading:
Corn + 3 cents/bu (Mar @ 5.45 ¾ )
Soybeans + 1` cent/bu (Mar @ 13.78 ¼ )
Chi Wheat + 3 ¼ cents/bu (Mar @ 6.54)
Cdn $ -0.00045 (79.19 cents)
WTI Crude Oil +0.62/barrel (59.86)
Grains are all higher, although well off their early overnight highs that saw corn trade up as much as 7 cents/bu, soybeans trade up as much as 11 cents/bu higher, and Chicago wheat trade up as much as 6 cents/bu. The November 2020 soybean futures traded to another new all time high overnight, as the extremely tight USA old crop projected soybean carryover makes 2021 USA soybean production critical. The market will work to ensure that American farmers plant close to 90 million acres of beans.
Traders will be looking to the USDA this week for any evidence of the return of the Chinese to buying American grains following their celebration of the Lunar New Year last week. The absence of Chinese buying last week did raise some concerns of their purchases moving to South America sourcing as the Brazil harvest starts to ramp up.
South American weather saw scattered Argentinian rains over the weekend, with rains any limited to the north this week. Brazil was mostly dry, except for the northeast, but chances for rains look good over the next 10 days, which will be beneficial for late bean development, but will continue to impede soybean harvest and 2nd crop corn planting.