Good morning friends!

Corn      358’2   +’2

Soybeans  985’0  +3’4

Chi Wheat   420’4  +’4

KC Wheat 427’0   +1’6

Cotton  71.49   +.39

 

 

USDA released exports a few minutes ago:

Bean export sales of 2,008,500 MMT for 2016-17 came in well above expectations, this was a huge week.

Wheat export sales of 513,800 MT for 2016-17 were within expectations. Exports of 461,000 MT up 22% from prior week.

Corn export sales of 1,023,000 MT for 2016-17 topped expectations. Exports of 851,000 MT, down 32% from prior week.

Upland cotton sales of 340.2 k bales was within expectations.

ECB chair Mario Draghi is on the podium right now talking about ECB QE expectations.  Ill have to pare through the speech after its done, but it sounds like they are going to keep the QE pedal to the metal over the next few years.  I think I just heard him mention 2019.  This is very bullish long term for the world economy as it should force the US FOMC to keep our interest rate somewhat low for the foreseeable future.  We can’t get too far from Europe. This should not change your plans much in the short run, but in the long run its a feather in the cap for anyone who produces a commodity.

Deferred soybean contracts for 2017 are now above 10.00, November is sitting right below its 100 day EMA, see below. It looks poised to break through, but be careful short covering isn’t in the cards. Dec corn is making pushes above its 200 day MA,  I would be looking to sell March corn futures if we see 375-380.  Stay long wheat and buy on breaks.  Stay short cotton and sell rallies to 73.00 in Dec 17.