Headlines:

  • Ag Panel Clears Two USDA Nominees for Senate Vote
    The Senate could vote as early as this week to confirm Steven Censky as deputy agriculture secretary and Ted McKinney as undersecretary for trade. They are the first Trump nominees for USDA to be cleared for a floor vote by the Senate Agriculture Committee since March 30, when the nomination of Secretary Sonny Perdue was advanced to the floor. “We will continue to work together to get Secretary Perdue a qualified, functioning team at USDA,” said Agriculture Chairman Pat Roberts and senior Democrat Debbie Stabenow in a statement following the unanimous vote. “Our farmers and ranchers are counting on us.” The committee said there is bipartisan support in the Senate for the nominees. The partisan efforts have hampered and delayed the administration’s ability to clear administration appointees in a timely fashion.
  • Russian traders trim Egypt premium to win, another, Gasc order
    Wheat merchants appear to be shedding some of their caution over dealing with top importer Egypt, with prices showing a reduction in the premium the country is being forced to pay following its latest cargo furor. Gasc, the Egyptian grain authority, on Tuesday purchased 180,000 metric tons of Russian wheat, for delivery in November, taking the total it has purchased so far in 2017-18 to 3.27m metric tons. However, the price that Gasc paid, at an average of a little over $213 a metric ton including freight, was up only $2.20 a metric ton from its last tender, two weeks ago, when it purchased 175,000 metric tons of Russian wheat. That increase is far lower than the rise in Russian export prices, which Ikar has reported at $6 a metric ton for 12.5% protein wheat, excluding freight, with SovEcon putting the rise at some $14 a metric ton.

Summary:

The markets were mixed to neutral in trading today with December Corn down 2.25 cents, November Soybean down 1.25 cents and December Wheat up 3.50. The US Dollar continued in its recent willing ways when it touched our price target of 93.80 when it made an intraday high of 93.92. That price level for the greenback corresponds with potential resistant that rests at a mid-price cycle degree mark of 180 degrees. Additionally, we have volatility based resistance overhead. The recent advance may pause for the next 5-7 trading days. The Dollar may continue higher after a mild correction. In doing so it may put additional pricing pressure on the Corn, Beans and Wheat. The Corn market traded lower on premise that the USDA may raise its 2017 Corn yield estimate upcoming October 12th WASDE. Brazil has been the recipient of beneficial rains with more forecasted on the horizon for key growing regions next week. Their Soybean planting should be fully underway soon, but expectations are for a smaller planted area than first predicted after a long dry spell delayed planting. US winter Wheat planting has slowed to one of the slowest paces in recent history because of rains in key central plains growing areas. On the brighter side of things, the rainfall has been welcomed because dryness was a major concern heading into the planting season. It is on pace to have its second slowest planting progress since 1996.