Grains Higher in Overnight Trade

Grains were higher in overnight trade trying to recover from two days of steep losses. In outside markets, crude oil reversed direction drifting back to the $50 mark and the US dollar dipped lower as well.

Wheat has been hammered this week as Southern Hemisphere production comes online. Australia is thought to have a bumper crop it’s harvesting with expectations north of 30 MMT versus USDA at 24 MMT. Argentina is offering new-crop wheat prices at 12.5% protein for export at $10 a MT less than US Fob prices for 11.5% protein.

Argentine growers have planted 46% of the 19.6 million hectares (48.4 million acres) expected to be sown with soybeans in the 2016-17 season with the country's central farm belt enjoying good growing conditions, the Buenos Aires Grains Exchange said on Thursday.

Yesterday, USDA’s soy crush was reported to be at 175.9 MB a record large for October and for the first two months of the marketing year crush is up 3% over last year versus a USDA annual forecast of a 2.3% jump.

U.S. employers boosted hiring in November and the unemployment rate dropped to a more than nine-year low of 4.6%, making it almost certain that the Federal Reserve will raise interest rates later this month. Non-farm payrolls increased by 178,000 jobs last month. The solid gains in employment likely reflect rising confidence in the economy.

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—Kevin McNew