Rain for the Mississippi River?
Corn and soybeans put up gains of 5.75 and 19 cents yesterday but have given most of it back in the overnight session. The USD is bounding back towards 114.00 level and putting some heat on commodities markets. Bond yields are rising as the Bank of Japan looks to be selling US Treasuries positions in order to stem the weakness of the Yen. The 30-year bond yield is currently trading at 4.35%, the highest level since September of 2011. Rain forecasted for the Midwest look to ease the low levels in the Mississippi River but those working with the waterways are planning for levels to continue to creep lower over the near term continuing to slow river traffic. The growing areas affected by drought continue to expand with corn and soybean area higher than 60% and winter wheat at 70%. It has been a very dry fall but the expansion of drought area is alarming. This is already influencing some planting decisions in the Southwest where we may see more dryland wheat instead of cotton and corn. For today, we expect some pressure to end the week and will be watching 6.74 & 13.70 for support and 14.02 & 6.92 as resistance. NFC Grain Comments Options -10.21.22