US Dollar Higher in the Overnight

In the overnight session the grains were mixed with corn up 1/4 of a cent, soybeans down 1/2 of a cent and wheat is down 2 3/4 cents. The U.S dollar is trading nearly 1 percent higher this morning after printing lows of 94.67 in yesterday’s session and rallying back to 95.55 percent to close positive on the day. The U.S dollar is trading very close to its 100 day moving average at 96.468.

The wheat market has traded sharply higher this week. After opening at $4.78 on Monday, July Chicago Wheat is now trading at $5.21 with the possibility of trading over resistance near 5.30 1/4 which is set from the previous high back on May 18th. Concerns about hot dry weather in India, the impact of the heavy rains in Oklahoma and Texas last week and dry conditions throughout Europe and parts of Russia has triggered some short covering, despite ample global ending stocks. Even with the rally in futures this week, wheat still remains firmly in its downtrend.

On Wednesday the 10th the USDA will release its June USDA Supply and Demand report. According to a poll of Reuters analysts old crop wheat ending stocks are expected at 712 million bushels a slight increase from last month. Old crop corn ending stocks are expected to show 1.859 billion bushels up eight million bushels from the May report and soybean ending stocks are expected at 339 million bushels down from 350 million last month. Soybean export sales continue to run hot in the second half of the marketing year when sales usually taper to nearly nothing as buyers switch over to South America.

—Cody Bills