Grains are higher in overnight trading:
Dec Corn + 2 ¼ cents/bu (5.39 ¾ )
Nov Soybeans + 2 ½ cents/bu (12.53)
Dec Chi Wheat + 1 ¼ cents/bu (7.46)
Cdn $ -0.00365 (79.135 cents)
WTI Crude Oil -0.84/barrel (78.09)
Grains have traded both sides of unchanged in narrow ranges overnight, but currently sit closer to their highs than their lows. Follow through bean strength from yesterday’s strong price action is supporting the grain complex in general. Overnight Malaysian palm oil were very strong setting all time record highs, and soyoil has followed that market higher overnight further supporting soybeans. China returns from it’s Golden Week holiday tonight, so there is some optimism that we could see some Chinese buying emerge as well – having said that, Brazilian new crop bean basis is actually breaking lower over the past few days.
The US Midwest looks to have another good harvest day today, before some wet weather starts to appear in the eastern Corn Belt. The western Corn Belt will see rains to begin next week. Over the next couple of days, we should see a number of private forecasters release their October estimates of USA 2021 production, ahead of next Tuesday’s USDA October Crop Report.
The USDA attache in Beijing estimated 2020/21 Chinese corn imports at 30 million tonnes, up from the official USDA current estimate of 26 million tonnes.
On a local note for our IP soybean growers, we have seen a number of recent deliveries that have borderline quality due to the presence of earth tag (soil adherence) on the beans. This typically happens when there is moisture present at the time of combining, and dust from harvesting sticks to any moisture on the soybeans. It is for this reason that experienced IP growers seldom harvest at night, when moisture levels increase and the bean quality is compromised. To date, we have not had outright rejections, but some discounts have been taken. In our minds, it is not worth jeopardizing a 3.50 to 4.00 per bushel IP premium by harvesting in unfavorable conditions. Just wanted to make sure everyone is aware of the issue before we resume harvesting.