Soybeans Continue their Climb

Soybeans continued to climb higher overnight, besting yesterday’s bullish move; corn and wheat were lackluster.

This morning, Stats Canada came in with a higher than expected wheat production estimate. The trade looked for a 30.7 MMT but the agency pegged it at 31.7 MMT. For Canola, output in Canada was slightly below estimates coming in at 18.4 vs expectations of 18.8.

In weather, dryness is starting to emerge as a concern in Argentina but Brazil is continuing to see rain potential in the dry Central region. Argentina saw limited showers in the SE yesterday with minimal rains expected the next 10 days. In the 11-15 day forecast rains favor the East and North, but the drier southern regions are not expected to see much moisture.

Crude oil prices were lower on Tuesday for the first day since the Organization of Petroleum Countries agreed to limit their production last week. But on Monday, a Reuters survey found that OPEC's output hit a record high in November, indicating that member countries could have a hard time sticking to their plan.

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—Kevin McNew