Grains Posted Gains in the Overnight Session

Grains posted gains in the overnight session with soybeans leading the complex higher. Corn and wheat were mostly flat in the night session with listless trade.

On Wednesday, soybeans saw an early morning run into the $10.45 territory that was previous highs before heading lower into the $10.30 mark. The market continues to mark time waiting for more bullish news on Argentina’s soy crop but nothing has materialized of yet. In Brazil, currency values there have reversed higher in the last two trade sessions after moving 3% lower at the start of the week. Meanwhile, the US dollar continues to recover from its week of losses, now in its third day of recovery. The basis at the US Gulf was off 6 cents yesterday.

In wheat, news from the Kansas crop tour continues to show a solid wheat crop. Tour participants continue to see average yields in the 45 bushel per acre range, well above last year. Wheat is suffering from a lack of solid export business and even with decline in the US dollar, US wheat continues to trade continues to trade at a $32/MT premium to French wheat, only slightly off the highs of a $35/MT premium when the US dollar was 6% higher.

WEEKLY EXPORT SALES

OC-Act OC-Exp NC-Act NC-Exp

Corn 769.3 750-1,100 60.5 150-350

Soybeans 815.8 400-60 430 200-400

Wheat 178.9 0-300 140 200-400

The risk of trading futures, hedging, and speculating can be substantial. Grain Hedge is a Branch of Foremost Trading LLC (NFA ID: 030793

—Kevin McNew