*The grain markets are higher with beans leading the way, currently up 20 cents. The bulls are closely watching the seasonal patterns to determine potential harvest lows. Historically, corn and soybeans tend to put in the seasonal low during the first week of October, (15-year pattern, Moore Research).
*The outside markets are generally quiet with crude oil and natural gas trading lower, the dollar trending higher and equities bouncing slightly.
*Japanese Central Bank announcing they will be extending monetary easing by increasing their asset purchasing fund to 700 billion. This is an attempt to counter the strength of the yen and follows the U.S. Federal Reserve announcement last week to stimulate growth through additional quantitative easing.
*China domestic crush margins improving but still in the red.
*Russia Ag Minister reducing 2012 harvest estimate to 72-73 MMT’s; down from previous estimate of 70-75 MMT’s. Exports still estimated at 10-14 MMT’s.
*News wire poll estimating U.S. corn yield at 121.0 bpa versus USDA September estimate of 122.8 bpa. News wire poll estimating U.S. soy yield at 35.8 bpa versus USDA September estimate of 35.3 bpa.
*U.S. weather outlook is wetter for the Southern Plains and into the Southern Midwest in the 6-10 day outlook. Light rains will slow harvest progress in the ECB this weekend but mostly dry weather will dominate the entire Corn Belt into late next week.
*Moderate rains are forecasted late next week in Oklahoma, Kansas, Missouri, Iowa, Illinois and Indiana. After this event has passed, warmer and drier outlook should resume into the first week of October.
EARLY MARKET FEATURES
*The bulls resurface after a few days of liquidation.
*Rumors that China may have secured 4-5 cargoes of U.S. beans.
*Foreign and domestic feeders reportedly buyers of soymeal.