Grain prices are moving lower in Chicago, with corn down 4, soybeans off 10 and Chicago wheat down 4 cents. We are past first notice day for November 2014 soybean contracts, please begin trading the January contract to avoid any issues with delivery.
Soymeal futures are trading down a percent in the early going on trade rumors that Argentine soymeal is U.S. bound following last week’s huge rally in price. Harvest is the last time we would expect soymeal imports, but the sharply inverted U.S. futures market has given domestic users the incentive to look abroad.
Northern Brazil received precipitation over the weekend but the trade remains concerns about output moving forward. Rainfall totals have been 30% behind normal during October, delaying planting and forcing some producers to replant. The 7 day outlook has turned a bit more dry over the weekend – we will continue to monitor the pace of planting in Mato Grasso.
Several private analysts will be releasing their updated crop projections ahead of the November 10th USDA report. FC Stone will be out today and Informa will give their updated numbers later in the week. Grains have traded sharply higher over the last month with very little consideration for current 2014/15 ending stock estimates.
