Commodities are mixed this morning. Corn is slightly weaker, soybeans are firmer and wheat is lower. The Dollar Index is marginally higher, crude oil futures are slightly firmer, and Dow futures are weaker.
Good harvest progress was made over the weekend across the Midwest where crops were still standing as the weather was favorable.
The war in Gaza continues with heavy fighting reported near Gaza’s largest hospital. IDF forces are focusing on that area as they believe that is where Hamas leaders are located. Calls for a cease-fire are being rejected by Israel’s Prime Minister as he vows to crush Hamas.
The humanitarian corridor” remains open in the Black Sea, though shipping and insurance costs have spiked following Russia’s attack on a vessel last week near a port in Odessa.
The center and northern areas of Brazil were hot and dry over the weekend and that pattern is expected to continue this week while conditions in southern Brazil remain too wet.
The Chinese were aggressive buyers of U.S. soybeans last week, with bushels split between the USG & PNW. This buying activity came before President XI and President Biden are expected to meet this week. Traders will closely be monitoring the discussions between the two leaders to see if it results in any thawing in relations between the two countries.
There was no opportunity for daily flash sales on Friday as USDA was closed in observation of Veteran’s Day. The commitment of traders’ report will be released this afternoon.
Late in the day on Friday, Moody’s cut its U.S. outlook from stable to negative, citing large fiscal deficits and political polarization. The White House claimed this was ridiculous and that it sees no reason for their action.
The continuing resolution the House and Senate arrived at in September to continue funding the federal government expires on Friday, Nov. 17th. If appropriations legislation or a stopgap spending bill is not passed by Congress by then the federal government will enter a partial shutdown on November 18th.
Have a great day.