Corn 1 to 2 higher
Soybeans 3 to 4 higher
The corn market is trading higher this morning supported by the news late Friday that the Trump administration has asked China to remove their retaliatory tariffs on U.S. goods. The expectation by the bulls is that China will remove the tariffs allowing them to import U.S. grain and soybeans. The trade is still optimistic that China will secure 5 to 7 mmt of U.S. corn. The market’s first test could come Friday when USDA puts out its regular monthly supply and demand report.
Soybeans are posting modest gains, moving closer to session highs posted early in the overnight trade. The bounce helped May take aim at the 100-day moving average that comes in around $9.17 today for resistance. The Commitment of Traders report showed that the fund short position is larger than the trade had expected and that along with the possibility of favorable Chinese news should be supportive early in the week.
The March dollar index is trading 15 points higher this morning at around 96.60. This morning the April crude oil contract is trading around $0.40 higher. The April contract is trading just above the $56.00 level.