ATTENTION: First Notice day is on Friday the 28th. All traders need to be out of their long December grain contracts by the end of today to avoid delivery.
In the overnight session corn increased 2 cents, soybeans declined 2 ½ cents and wheat in Chicago rose 4 ¾ cents as we go into the morning pause in trading. The U.S dollar is trading lower for the 3rd day in a row. This morning 120,000 metric tons of soybeans were sold to China for 14/15 delivery.
John Deere quarterly earnings report was released today and provided U.S corn and soybean yield estimates. For corn John Deere put U.S yield at 171.7 bushels per acre which is 1.7 BPA below the existing USDA forecast. For soybeans, Deere put yield at 46.6 BPA which is .9 BPA below the latest WASDE report.
The wheat market has been supported recently by the cold weather which has threatened next year's crop in the U.S, Russia and Ukraine. In the U.S winter wheat conditions dropped 2% on Monday in the crop progress report bringing good-to-excellent ratings on the crop to 58% percent. A warming trend next week in the 6-15 day will unlikely help germination for Midwest wheat. The Russian wheat crop has also been suffering from a lack of precipitation which started to affect the area as far back as August. Recently, the situation has intensified with precipitation 60% below normal over the last month. Weather models show no relief in sight for the Russian crop with the next 1-2 weeks continuing to point to dryer weather.