Grains are higher in overnight trading:
Corn + 3 ½ cents/bu (Dec @ 4.07 ¼ )
Soybeans + 6 cents/bu (Nov @ 10.68 ¼ )
Chi Wheat + 8 cents/bu (Dec @ 6.26 ¼ )
Cdn $ +0.00145 (75.77 cents)
WTI Crude Oil -0.36/barrel (40.60)
Grains have traded both sides of unchanged overnight, but currently sit close to their highs for the session. Market bulls are clearly in control of the market at the moment, as they buy based on concerns over dryness in the Black Sea and southern USA Plains regions, and based on continued massive demand from China. Increasing rainfall in South America and ongoing USA harvest do not appear to be phasing anyone’s appetite to own grain futures at the moment.
Yesterday, the Rosario Grain Exchange cut their estimate of Argentine wheat production by 1 million tonnes, lowering it to 17 million tonnes. They cited a combination of drought and frost for the reduction, indicating that up to 1.5 million acres of wheat might go unharvested.