Glacier FarmMedia — Corn and soybean futures at the Chicago Board of Trade were showing some strength during the first week of October, despite seasonal harvest pressure keeping a lid on the upside.
The shutdown of the United States government has limited the release of several key reports that typically provide direction for the grains and oilseeds — notably the weekly harvest updates from the U.S. Department of Agriculture.
In the last official report, as of Sept. 28, soybeans and corn were 19 and 18 per cent harvested respectively. Analysts surveyed by Reuters estimated the soybeans progressed to 39 per cent done by Oct. 5, with corn at 29 per cent harvested.
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Monthly supply/demand estimates, set for release on Oct. 9, will also be delayed. Ideas that average yields will be revised lower when reporting eventually resumes provided some support for soybeans and corn.
Optimism over a promised aid package for farmers dealing with the fallout of U.S. trade policies and the resulting lack of Chinese purchases was another feature underpinning the futures.
From a chart standpoint, November soybeans moved above several key moving averages during the week. The contract had dipped below the psychological US$10 per bushel mark on Oct. 1, before uncovering support to settle at US$10.2950 a week later.
Corn also corrected off nearby lows during the week, closing just below its 20-day moving average at US$4.22 per bushel on Oct. 8.
Barring any major harvest delays or developments on the trade front, analysts expect the crops will hold rangebound through the harvest season.
Wheat futures hovered just above their weakest levels in five years during the week. The December Chicago soft wheat contract sees major support at US$5.00 per bushel. Large global supplies were seen as limiting any attempts at moving higher in the wheat market.
