Corn and wheat futures are unchanged while soybeans are trading 3 cents higher coming out of the overnight session.
This morning’s export sales report showed continued strong demand for U.S. soybeans. The USDA reported 2,166,800 tonnes sold for the current marketing year, with China accounting for 80% of export business this week. This sales total was over double the highest trade expectation coming into today’s report. We continue to see soybean basis out of the gulf edge higher, increasing roughly 10 cents in the last 5 days. Corn sales for the week were at the high end of expectations with with 1,031,200 tonnes reported sold. Wheat sales missed the mark with just 299,400 tonnes sold.
Brazil is expected to receive rain across their grain belt today and into the weekend, easing dryness concerns for the key growing state of Mato Grasso. Dry conditions have hampered planting across the country with Mato Grasso receiving 10 centimeters less rain that normal during the last month. Soybean bulls have pointed to this story as helping soybeans in the near term. A close above $9.67 on the November 2014 soybean contract would indicate that this run might still have gas in the tank from a technical perspective. First notice day for the November contract is Friday, October 31st.
Harvest weather continues to look favorable for the majority of the U.S. grain belt. Most areas will be receiving above average temperatures and below average precipitation through the weekend.