DTN Midday Grain Comments 09/22 10:43
Grain Futures Up Slightly Midday Wednesday
Corn is 3 to 4 cents higher, soybeans are 2 to 3 cents higher and wheat is 7
to 10 cents higher.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is firmer with the Dow up 400 points. The U.S. Dollar
Index is 0.08 points lower. Interest rate products are mixed. Energies are
firmer with crude up $1.00. Livestock trade is mostly higher. Precious metals
are firmer with gold up $1.00.
Corn trade is 3 to 4 cents higher at midday Wednesday with flat spread
action as trade remains rangebound with outside markets calmer as China returns
from holiday and harvest continues to expand. The weekly ethanol report showed
production down 11,000 barrels per day with stocks up by 101,000 barrels as
driving demand slacks a bit. South America will continue with early full-season
corn planting with little weather concerns there so far. Corn basis will
continue to fade to harvest, which should push to above average pace with the
higher temps near term and some rains in the western belt. On the December
contract, we have support at the fresh low at $4.97 while resistance is the
20-day at $5.27.
Soybeans are 2 to 3 cents higher at midday with trade working back towards
the middle of the range with trade looking for confirmation of more export
bookings along with further worries about biofuel targets triggering a short
selloff and pressure on the oil side of the complex. Meal is $1.00 to $2.00
higher and oil is 0.40 cent to 0.50 cent lower. Harvest should continue to
expand with weather continuing to push maturity along. Basis levels have been
flat to weaker in recent days. South American planting will get more attention
into the end of the month. On the November soybean chart, resistance is at the
20-day at $12.90 with support at the recent low at $12.57 1/2.
Wheat trade is 7 to 10 cents higher at midday with trade bouncing back again
from the lower end of the recent range, with winter wheats leading so far
following spillover support from row crops and outside markets. The dollar
continues to hold over 93 points on the index, near the summer highs. KC is
even with Chicago with flat action so far, with Minneapolis at a 195-cent
premium in weaker action. Weather in the Plains looks dry short term as
planting gets going with little fresh news on Southern Hemisphere weather so
far. KC December on the chart has resistance at the 20-day at $7.07, with the
lower Bollinger Band at $6.80.
David Fiala can be reached at email@example.com
Follow him on Twitter @davidfiala
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