Grains had modest positive gains in the overnight session while crude oil was sharply lower and the US dollar pushed higher off of its recent lows.
On Monday, USDA reported that 15% of the US corn crop has been harvested, up from 9% last week but below the 5-year average of 19%. Likewise, soybean harvest progressed to 10% from 4% last week, but slightly below the 5-year average of 13%.
Rains this week are expected to be confined to the East with the Ohio River Valley, Mid Atlantic and Carolinas with rain of 3 to 6 inches expected in some East Coast areas. Next week brings a chance of showers next Tue/Wed in the Western Cornbelt which could limit harvest advances.
Soybean basis fell sharply on Monday as any premium between and old- and new-crop bean deliveries has all but evaporated at most markets. Potentially adding more pressure to interior basis is the closure of three MS river locks in S IA and N MO due to flooding. The locks are expected to close later this week due to flooding.
Crude oil prices edged down on Tuesday as a jittery market reacted to statements by Iran that dimmed hopes for an agreement by major oil producers to cap or freeze output. As energy ministers arrived in Algiers for a summit on energy, Iran Oil Minister Bijan Zanganeh called the meeting set for Wednesday “consultative,” adding to concerns that OPEC member nations won’t adopt production limits to prop up the sagging price of oil.
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