Good afternoon friends!

Corn 348’2 (+2’2)

Soybeans 962’6 (-10’2)

Chi Wheat 394’4 (-1’0)

KC Wheat 401’6 (-5’2)

Cotton 69.68 (+1.16)

 

Markets made their moves early and traded sideways throughout the session. Corn has gotten a tailwind on the back of smaller than expected yields (on the margins) and a liquidation of wheat vs corn and soybean vs corn spreads over the last few sessions. It feels like corn yields are pretty well pegged around 174 by almost everyone, while the herd seems to be increasing soybean yields by the day. Soybeans hanging in above 9.60 is welcome but I wonder how long until we test 940 again. Just a reminder Nov Soybean option expiration is 2 weeks away, I think vol is going to pick up between now and then.  If you plan on holding beans you might want to think about rolling into Dec or Jan now.

Corn going higher is the headline, but the market to watch of late is coming from the wheat complex. The question I am getting that I don’t have an answer to is “what the heck is getting into Minnesota wheat? Check out the price action vs KC of late.

 

You could make the case there is protein demand but we should be seeing KC perform in that environment. KC has been the whipping post.  AS you know, I think a move is coming in wheat.  Maybe the fundamentals in Minnesota will lead the way.  Im a buyer of KC at these levels.