Corn: 1 to 2 higher
Beans: 10 to 11 higher
The corn market fell Friday and was teetering just above contract lows. The Chinese tariff on US Ag products does not really change things all that much in the corn market, although the lack of ethanol exports will further damage the demand for ethanol and make it that much harder for US ethanol producers.
The corn market is trading higher this morning as the corn market makes an attempt at recovering from its oversold condition. The weather was pretty good for corn growers last week and the trade will be watching to see if that translates to any improvement in the crop condition rating when it comes out this afternoon. The demand problems have been discussed for quite a while in the corn market and US corn remains uncompetitive vs. South American corn, but the US supply is still a big unknown.
The soybean market fell again last week after China announced additional tariffs on US Ag products and President Trump followed up with tough tweets of his own. Brazilian planting will begin over the next 3 to 4 weeks with Brazilian farmers expected to increase their soybean acreage by 2 to 4% with some of those acres coming from corn. This morning the bean market is trading higher recovering much of what was lost Friday.
The September dollar index is trading 32 points higher this morning at around 97.85.
This morning the October crude oil contract is trading around $0.40 higher. The October contract is trading just above the $54.50 level. That is about $1.00 lower than at this time Friday. The September ethanol futures were $0.021 lower Friday closing at $1.317 putting it 32.58 cents below the September RBOB futures settlement price of $1.6428.