Rumors continue to swirl the last two days that the Chinese may be buying 10 mmt of tariff free soybeans with the hope that corn, ethanol and sorghum would be included. Unfortunately traders are failing to rally on these rumors or hold any strength in the markets. Heavy farmer selling as harvest progresses in the US seems to be limiting gains on the CBOT and is starting to force basis levels wider across the US. With producers sitting very “undersold” for the crop that they are currently harvesting and yields coming in better than expected sales are starting to ramp up. If you are in this camp, I would strongly urge you to get basis locked in on any fall deliveries you will have to make.
On the positive side the funds continue to reduce their short position in corn (-68,000 contracts) and add to their long position in soybeans (+63,000 contracts). This trend has been taking place over the last several weeks which is a good sign.
Artic air is coming down from Canada and will remain here until the 4th or 5th of November. This cold air pushes the majority of any rain to the South and East. While it may be cold, at least the rain will be out of the forecast.
Corn and soybeans are both trading 2 lower this morning.
Have a Safe Day!