Overnight Gains May Boost Grain Open

A higher start is forecast across the floor, around 10-15 wheat, 10 corn and 15-20 beans, following overnight gains. The outside markets mostly point higher this am with crude oil sharply higher and the $ index much lower. Equities are lower this am but not enough to pressure grains.

The National Oilseed Processors Association Nov crush was 139.4 million bushels with oil stocks 2.042 billion lbs, both in line with trade ideas. Meal deliveries jumped this am with Bunge putting out 210 of the 211 delivered. The only commercial stopper was Dreyfus and they only stopped 1. Looking back to Friday, the final estimates for Rosenthal in corn were 3500 May corn bought along with 6000 Jan 340 puts and 2000 Jan 320 puts.

Up to .5" of much needed rain fell in parts of Argentina's grain belt over the weekend but mostly dry, hot weather is forecast this week, which will stress corn and beans. Brazil enjoyed rain in the northern grain areas over the weekend, with up to 1.5" in Mato Grasso, their largest bean growing state. Up to .6" fell elsewhere in Rio Grande and Parana overnight. More rain is forecast in Mato Grasso the next 3 days with light, isolated rain elsewhere. Mostly dry weather is likely the second half of the week. More rain is needed soon in southern Brazil to keep corn and bean prospects favorable there.

Light, scattered precipitation is forecast in the midwest this week, which will provide moisture for the soft red winter wheat crop when it comes out of dormancy next spring. The southwest hard red winter wheat belt had a mostly dry weekend and it will remain this way the first half of this week. Light, scattered precipitation is forecast the second half of the week. ---Vic Lespinasse