Grains See Mixed Signals From Outside Markets

A lower start is expected this am, around 3-4 in wheat, 3-5 corn and 5-7 beans. The outside markets are sending mixed signals to the grains with crude oil lower while equities and the $ index are higher.

Traders will be watching for any fresh news out of Argentina today regarding the farmers strike and standoff vs the government over the 35% bean export tax. They will also keep watching the outside markets for guidance during the day.

Argentina will be mostly dry the next several days, allowing early harvesting of beans to speed up. Brazil saw more harvest delaying rain in the north yesterday and more of the same is forecast the next several days.

Flooding is worsening in parts of the US Northern Plains Spring Wheat Belt, especially in the Red River valley, but this is already mostly in the market. The Southwest Winter Wheat Belt will benefit from precipitation tomorrow and Friday, either in the form of rain or snow, with up to 1.5" forecast. The very dry western parts of the belt will be included in this moisture event. Mostly dry weather is forecast this weekend but more precipitation is forecast Sunday night/Monday am. The 6-10 day calls for cool, wet weather, which will help replenish soil moisture supplies.--Vic Lespinasse