Corn: Steady to 1 lower
Beans: 1 to 2 higher
The corn market traded lower due to improved crop conditions form the recent rains and weakness in the soybean market. At this time, no frost events are indicated across the Corn Belt. South American basis levels have fallen again this week despite the record export demand for Brazilian corn, and Argentine corn values are at a discount to US corn and are likely going to stay that way into at least the end of the year. The EIA’s weekly ethanol production and stocks reports will be out this morning. There is an expectation that with all the talk of plant shutdowns or at least slowdowns, production will pull back again this week. That will likely translate to another drawdown in stocks.
This morning the bean market is trading a bit higher as traders wait for new news to move prices. The weather at this time is a non-factor, but the soybean crop size really depends on the fall and the timing of the first damaging frost. So, the attention of the market is going to continue to be on the length of the 2019 growing season.
The September dollar index is trading 9 points higher this morning at around 98.00.
This morning the October crude oil contract is trading around $0.80 higher. The October contract is trading just below the $56.00 level.