Good Morning!

Wheat is leading markets higher in overnight trade. Wheat is supported ahead of bitter cold temperatures in the Black Sea region and continued heavy rains lowering crop quality in Argentina. Wet conditions in Argentina are expected to continue through the end of the month which could also be detrimental to the newly planted soybean crop. Soybeans are supported on hopes of additional Chinese purchase. The outside markets are a touch supportive as energies are higher while the dollar retreats after trading to a 19-mo high on Friday.

NOAA’s 6-10 day outlook suggests above normal temperatures and slightly above normal precipitation for the Midwest and Plains. The 8-14 day outlook continues with the same theme with exceptionally wet weather expected for the southern Midwest and Delta.

The average trade estimate for today’s NOPA crush report is estimated at 168.44 million bushels crushed in November versus 172.35 million in October and 163.55 million in November of a year ago.

The Federal Reserve will be holding its highly-anticipated FOMC meeting Tuesday, December 18 to Wednesday, December 19. Federal Reserve Chairman Jerome Powell will hold a press conference at 2:30 p.m. ET on Wednesday. Consensus among economists remains that the Fed will raise interest rates; however, the real focus of this meeting will be on the Fed’s language about the central bank’s plan for the future.

The government shutdown deadline is Friday, December 21. If lawmakers and the White House cannot reach an agreement on spending bills, the federal government will shutdown which will close the USDA.

Have a great day!