Morning Market Review by Bryce Knorr
Futures are trading cautious higher this morning, with light bargain hunting noted after this week’s selloff. However, the approach of the weekend is also likely to keep some traders on the sidelines to avoid headline risk.
Corn prices are trying to hang onto modest gains, fighting the potential for hedge pressure headed into an active harvest weekend. December futures successfully defended a test of this week’s lows on Thursday, allowing a rebound in the overnight session.
Still, concerns about the slow pace of exports remains an issue clouding the market’s outlook. Export Sales reported by USDA for the latest week totaled just 2.8 million bushels. While shipments of large pre-season sales was good at 29.1 million bushels, high prices are rationing usage by turning more buyers to feed wheat. Japan raised estimates of feed usage, which are already sending the mix of corn in rations to 20-year lows.
Other Asia importers, who are short-bought on supplies, are also eyeing wheat, including South Korea and the Philippines. South Korea is also looking for 5.5 million bushels in a tender due Monday.