Cooler temperatures and rains, while not drought ending, still have given the bean crop a chance to stabilize. The biggest issue will be with double-cropped beans: can they still produce in time to beat the first frost? We shall see. While we are not continuing to shrink the crop, we will still need to ration some demand. Rationing will not happen with much lower values. From here, the downside looks limited, but could be overdone by fund and spec liquidation. Oil deliveries continue, but at very muted levels. Today, only 152 contracts will be trading hands. The open interest still leans to a bullish sentiment. Inverses on the spreads are relaxing, but still pretty punitive to the long basis hedger. Basis has its spots of premium bids and other areas of slack demand or disinterest might be more descriptively accurate. OI: B +4006; M +10,435; O -1,216. Lower on weather and stabilizing crop prospects.
Kyle Smith, Mike O'Dea, Ben Parks, Collin Hulse, Ingrid Gronlund