SOYBEAN RECCO UPDATE DAY 1: On Tuesday we advised using the Brazilian weather scare market to sell the first 20% of stored ’23 beans when January futures hit 1374. As of today we also advise pricing another 20% when January futures hit 1430 or by Christmas, whichever comes first.
On the Grains:
Grains are steady-to-mixed in overnight trade as traders nervously await today’s reports. It’s still unclear what caused the sudden jolt higher in wheat yesterday, but it was most likely short covering by funds with big net short positions ahead of today’s reports. There was also a Ukrainian report that a Russian missile had struck a commercial ship in their coast-hugging “safe corridor” sparking new wariness about similar attacks on grain ships.
At 7:30, we get a new batch of weekly export sales that may or may not set the tone for early trade. That’s because the big kahuna report, the November WASDE update, will come out at 11 a.m. and final positioning for that might trump export sales. At any rate, here’s the range of expectations for those:
Corn – 600k to 1.2 million tonnes, Soybeans – 800k to 1.5 million tonnes, Wheat – 250K to 500,000 tonnes.
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