Corn is currently down 2 and soybeans are up 5 to start the week. Corn initially opened 9 higher, but quickly sold off as physical traders took over the computer trade.
Friday’s stocks report came in bullish for corn and wheat, while bearish for beans. Even though there were premiums for early harvested corn not enough was completed to comingle stocks. There probably was some comingling of bean stocks in the south, but the lack of exports over the past 6 months also didn’t help. Bean stocks grew by 30 million bushels. The price action from Friday was pretty violent as beans were down 40 on the day, when many were looking for a bullish report. Corn made a run at 7.00 December futures but ran out of gas as beans liquidated.
The OPEC+ group of oil producers is discussing output cuts of more than 1 million barrels per day (bpd), OPEC sources said, and voluntary cuts by individual members could come on top of that, making it the largest cut since 2020. The meeting will take place on Oct. 5 against a backdrop of falling oil prices and months of severe market volatility which prompted top OPEC+ producer, Saudi Arabia, to say the group could cut production. This has crude oil up over 350 dollars a barrel this morning.
A rally in crude oil should bode well for corn but may not last long. I would recommend having offers in place for fall sales that need to be made. $6.50 with a top of $7.00 is my guess today. There is a lot of bearish news on the export side that is going to keep a lid on the markets.
Have a Safe Day!