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October 30th - Morning Market Commentary

10/30/2020
October 30th - Morning Market Commentary

Grains are mostly higher in overnight trading:

Corn – 1 cent/bu (Dec @ 3.97 ½ )

Soybeans + 8 ¼ cents/bu (Jan @ 10.58 ¾ )

Chi Wheat + 2 ½ cents/bu (Dec @ 6.06 ¼ )

Cdn $+0.00130 (75.185 cents)

WTI Crude Oil -0.15/barrel (36.02)

Grain futures getting a small bounce higher overnight as all grain futures months are trading somewhat higher, with the exception of December corn futures.  The weakness in December corn this morning is simply a function of some carrying charges getting into the market, as there is no shortage of corn in the USA this fall, so the fact that December corn futures were trading at premiums to March and other deferred months was not expected to last.  Corn sales to China and abroad are excellent out of the USA so far this harvest season, but actual corn shipping has been slow, further justifying the reasons for carry in the market to widen.

Beans seeing support as South American weather forecast are drier for both Brazil and Argentina going into next week.  Conditions for planting in Brazil are good, as recent rains have recharged surface moisture levels, but there is still a lot of concern about areas that remain on the dry side in that country.

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