Grains Move Higher in the Overnight

Grains moved higher overnight led by soybeans as they moved above $10 a bushel on front month May. Outside markets saw crude oil and equities higher while the US dollar hit their lowest mark since early February.

USDA said exporters sold 120,000 MT of Hard Red Winter wheat to Algeria and 120,000 MT of soybeans to unknown destinations.

Traders are keenly watching the weather outlook in the dry Southern Plains. Warm temperatures Thursday through Sunday will increase some of the need for moisture as the crop develops further. The latest weather models show a rain system for Mar. 22-24 in this region but it will likely miss where the Texas and Oklahoma Panhandles miss out A second system is expected in western Hard Red Winter Wheat areas Mar. 26-28 but again the SW Plains are expected to miss out.

USDA weekly exports showed a good week for corn with both old- and new-crop sales beating the high end of expectations. Meanwhile wheat was at the low end of expectations for both old- and new-crop while soybean old-crop sales were at the low end of expectations but new-crop exceeded expectations.

Export Sales-

On Wednesday, the US Federal Reserve raised interest rates as expected and signaled that they expect a total of 3 rate hikes in 2017 and 3 more hikes in 2018 based on the strong economic signals.

The risk of trading futures, hedging, and speculating can be substantial. Grain Hedge is a Branch of Foremost Trading LLC (NFA ID: 0307930)

—Kevin McNew