Headlines:
- First notice day for December futures contracts is Wednesday, November 30th
- Russia is currently seeing outbreaks of the highly contagious African Swine fever and will decide next week on whether or not to quarantine pig farms in the southern region of Krasnodar
- Soybean futures break new highs, as importers pile in
Soybean futures broke four-month-highs, as fund buying continues to push the complex higher, with beans up for seven straight sessions. The oilseed is getting support from the rallying Chinese markets, as well as good export sales, as buyers scramble to get in their orders before the dollar rises any further. “Beans continue their strong rally on technical buying and strong export sales,” said CHS Hedging. “Export sales report on Friday showed aggressive sales as world buyers have been anxious to build inventory before the dollar continues on its long-term uptrend,” according to reports. And weekly US export inspections of soybeans were reported at the top end of analyst expectations, at 2.09m tonnes, the US Agriculture Department said.
Summary:
The grain markets’ price action was rather mixed on the day. There a number of outside market factors that have caused some pause for concern. Crude Oil has been back and forth the past 10 trading days. After being down the last few trading days today showed quite a bit of strength. It appears that the OPEC members are inching closer to a production cut agreement and they have invited non OPEC members to join. The next meeting is scheduled for November 30th. The US Dollar has been hitting new high consistently. Last week it closed above or key 101.25 level for every day except Monday suggesting that it will eventually reach 103 at a minimum.
Corn was float today closing near the middle of the day’s trading range. It was off one tick when the dust settled. Soybean futures continue to find legs. It was up 9.25 today but finished the day well off of its intraday high levels. Wheat has been dropping after reaching resistance at 412 and looks like it may continue lower of the next few trading days. Cycles were calling for Wheat to advance but the fundamental narrative seems to be weighing heavily on price. It is right up against downside support and if it fails here it could end up falling very quickly.
