- Monday morning has been mixed with soybean and wheat futures higher while corn futures are slightly lower. The surge in world vegoil prices has offered support to Chicago soybeans along with huge weekly export inspections. The Chicago wheat market has followed world wheat prices slightly higher in the Black Sea while corn remains lacklustre on reduced fund selling and some fresh wheat/corn spreading. We would look for mixed close tomnight and we doubt that the grain futures will be able to sustain any lasting recovery. By early Tuesday, fund buying interest is expected to wane.
- Chicago markets are holding better than expected which could spark some additional late day short covering by the funds. We maintain that seasonal highs should occur in the last half of October or early November. Our upside price target remain; $3.60-3.70 December corn, $4.30-4.40 December Chicago wheat, and $9.90-10.10 in November soybeans. November options go off the board on Friday.
- The midday weather update is drier across the Plains and much of the Midwest, with the only real chance of soaking rain occurring across the Ohio Valley and northward into Ontario. The remainder of the Midwest, Delta and the Plains will enjoy excellent harvest conditions. The overall weather pattern remains a Trough/Ridge/Trough which will produce above to much above normal temperatures. If the forecast is correct, much of the Central US corn and soybean harvest should be completed in the next two weeks. We see little to no issues with Central US weather other than the drying of topsoil for US winter wheat germination.