Early Market Talk October 28, 2019

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Markets starting the week mixed on continued lite volume. Trade talks with China viewed and reported as progressing favorably.

At 0600 CZ19 trading off $0.02 ½ at $3.84 ¼ with SX19 $0.01 ¾ higher at $9.22. Chi and KC wheat $0.05 ¼ and $0.03 lower.

Dow futures starting the week 93 pts higher at 26,995. Quick chart look shows Dow needs to take out the high of two weeks ago or risk mounting selling pressure. Double top on the daily chart and developing series of lower lows? Key area to watch.

Harvest halting rains over the eastern belt this weekend. More wet weather for them this week. Western areas running over the weekend with a couple drier days ahead. Dakotas a dry week ahead.

Mostly dry weather to continue in central Brazil this week. First notice day for SX19 deliveries Thursday. Take delivery you pay storage and interest over the weekend. Last check over 1,100 contracts registered for delivery. SX19 open interest at 120K contracts. For comparison OI in SF20 stands at 281K. SXSF at 14 ¼ this morning.

Funds added 10K to their net short corn position last week. We have them short 81K this morning. Soybean net long at 60K.

FCStone final crop survey this Friday. If a participant, be ready with the numbers Friday morning. Results mid-afternoon.

SX trading 78 cents higher than this date a year ago with Iowa processor basis on average 15 cents better.

Export inspections later this morning. Harvest progress this afternoon.

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