DTN reports:
November soybeans and all three wheats finished higher Monday after crops were afflicted by winter conditions in the northwestern U.S. Plains over the weekend. December corn was unchanged on the day, a curious response to a weekend where crop loss took place.
Wheat:
December KC wheat closed up 6 1/4 cents at $4.35 3/4, still benefiting from Friday’s unexpected short-covering after a bearish WASDE report on Thursday. Tuesday’s Crop Progress report will give an update on winter wheat planting, but probably won’t be able to tell much about the extent of freezing temperatures in Kansas over the weekend. Planting will be able to resume later this week as temperatures are already turning warmer again. December Chicago wheat remains the most bullish-acting of the three U.S. wheats and was up 3 cents Monday at a new two-month high. December Minneapolis wheat closed up 4 cents at $5.52 after Manitoba and the Dakotas all endured heavy snow and blizzard conditions over the weekend. The snow may not last long as temperatures warm again this week, but spring wheat quality continues to take big hits at the end of 2019. U.S. wheat prices are showing decent rotation since the lows of early September, but price gains are likely to remain limited by plentiful U.S. and world wheat supplies. Technically, the trends are sideways for all three wheats at historically cheap levels. DTN’s National HRW Index closed at $3.93 Friday, a new two-month high and 27 cents below the December contract. DTN’s National SRW Index closed at $4.92, a new two-month high.
Corn:
December corn ended unchanged at $3.97 3/4 Monday, a surprisingly tame day of trading after a weekend of winter weather in the northwestern U.S. Corn Belt. Heavy snow and blizzard conditions in the Dakotas pushed subfreezing temperatures into surrounding areas, bringing an end to row-crop growth in the region that is going to be difficult to quantify. Temperatures are expected to be warmer the next ten days for the bulk of the Corn Belt, giving crops in other areas a chance to mature. Light to moderate showers are also expected this week and will keep fields wet in the central Corn Belt. Due to Columbus Day, Monday’s USDA reports are rescheduled for Tuesday, including USDA’s Crop Progress update. Fundamentally, USDA’s corn crop estimate of 13.78 billion bushels (bb) looks too high and immature crops in the fields are likely to keep corn prices well supported for the end of 2019. Technically, the trend for cash corn is up with traders still keeping an eye on the weather. DTN’s National Corn Index closed at $3.79 Friday, a new two-month high and 19 cents below the December contract. In outside markets, the December U.S. dollar index is up 0.18 and other commodities are mixed, yet mostly higher. November crude oil is trading down $1.16 a barrel.
