U.S benchmarks are lower this morning just as the week heats up. First, the Federal Reserve begins its two-day policy meeting today and concludes tomorrow at 1:00 pm CT. A cut of 25 basis points is fully expected and the probability for 50 basis points hovers at 25%
Corn futures softened up last week as better weather started to appear on intermediate-term forecasts. This is undoubtedly good news for what is in the ground, but there is still an enormous amount of uncertainty regarding how many acres got in the ground.
The market is overall quiet after a new record close for the S&P on Friday. Reports that high-level U.S officials are traveling to China for a fresh round of trade talks has had little impact on an already firm tape.
Corn futures and soybeans continue to chop around as participants wait for new news to give the market a new direction. We would not be surprised to see the market hold bid into the weekend where we may get weather premium and trade talk premium.
The path of least resistance is higher, this is undeniable. The U.S economic data is underwhelming at best and hopes of turning a corner were dimmed yesterday with another weak read on Manufacturing PMI.