A quiet overnight session and a muted day session saw futures drift higher on a lack of economic numbers as traders look forward to the end of the week. The focus seemed to be on adding to or establishing dovish positions.
Friendly start to the Pro Farmer crop tour. The weekly crop progress report was released yesterday afternoon, showing the U.S. corn conditions at 56% Good/Excellent, down 1% from the previous week and 2% below expectations.
Oil is stuck in a big trading range. A range we expect will eventually lead to an upside breakout. We believe that because U.S. oil demand is near record highs, crude supply will fall below the average range in just a few weeks and that U.S. crude production numbers are too optimistic and weak demand projections are too pessimistic.
U.S benchmarks are off to a strong start this week. One is welcome to credit this action to hopes on U.S and China trade negotiations, however, the move began after pinging major three-star support on Thursday and the reversal is much broader.
November soybean futures tried to gain ground early last week but failed to attract new buyers near the psychologically significant $9.00 handle. We saw several headlines that had a positive spin, all of which were sold into.