Morning Highlights


Highlights


  • USDA Stocks and small grains data to be released Monday at 11 AM Chicago Time.
  • USDA monthly crop production & supply/demand report is scheduled for Friday, October 11 at 11 AM.
  • Energy markets are trading higher this morning.
  • US$, CD$ and gold markets are all trading higher this morning.

Corn


  • The corn market was pressured overnight from spillover weakness in the soybean pit. Overall trade volume was fairly thin.
  • Dec corn hovers around the $4.50 area as positions get evened up ahead of Monday's USDA data. 
  • Weather conditions remain favorable for harvest activity this week.  Yield reports are coming in better than expected for most areas.
  • Support for December corn holds at the $4.45 3/4 level with resistance up near the $4.60-$4.65 area.
  • Weekly export sales are estimated to range from 500-700tmt.
  • Funds estimated short position is near 171,000 contracts.

Outlook: mixed ahead of the weekend and USDA report.  End of month and end of quarter positioning expected


Oilseeds


  • The soybean market traded lower overnight, continuing yesterday's late weakness.
  • China plans to reduce their cotton acreage significantly this year because of unfavorable weather conditions.
  • Harvest activity progresses as the week moves along and basis weakens on harvest pressure. Hearing reports of better yields being harvested.
  • Weekly export sales are estimated to range from 2.3-2.8 million tonnes (Chinese purchases are expected to account for the lion's share of the sales number).
  • Support for November beans is near the $13 level.  There is a gap intact from $12.72 1/2-$12.72 left back in mid August.  
  • December palm oil futures closed down 27 at 2267 ringgits. China markets were quiet overnight.

Outlook: weaker on position squaring ahead of the weekend and next week's USDA data and hedge pressure


Wheat


  • The wheat market traded mixed overnight with Chicago lower , KC mostly unchanged and Mpls slightly firmer.
  • Weekly export sales estimated at 500-700tmt.
  • Unfavorable weather conditions in Argentina, along with hopes for increased demand, provided underlying support to the wheat market.
  • End of month, end of quarter position evening may limit upside potential for the balance of the week.
  • Fund hold an estimated short position of 71,000 contracts.

Outlook: mixed traded expected ahead of the weekend and USDA small grains report on Monday