In the overnight session corn was up 2 1/2 cents, soybeans up 1/4 of a cent and wheat increased 3 1/2 cents. A reportable sale was announced yesterday with 390,000 metric tons of new crop soybeans sold to unknown destinations. This morning another reportable sale was announced for 130,000 metric tons of old crop corn to Taiwan.
The U.S dollar is trading lower by over 1/2 a percent this morning after U.S. GDP released worse than expected numbers. GDP fell sharply in the first quarter to .2 percent annually as a result of low crude oil prices and harsh weather conditions slowing spending. This was a sharp decline from last year’s fourth quarter which reported GDP of 2.2 percent annually.
Yesterday’s trade activity was volatile for soybeans and has me questioning whether or not the commodity can continue higher in today’s session. Soybeans started out strong in yesterday’s session, climbing to $9.88 at the high of the day. However, the oilseed was unable to hold onto the gains and losing 7 cents in the last 45 minutes of trading. On the daily chart, soybeans struggled to rise above the 50 day moving average which has acted as strong resistance recently.
The weather looks positive for planting progress throughout the majority of the grain belt for the rest of the week. Showers will continue to delay planting in the Delta with substantial amounts of planting still left to complete in that region.
