DTN Midday Grain Comments

General Comments

The U.S. stock market indices are mixed with the Dow 50 points higher. The interest rate products are higher. The dollar index is 150 points lower. Energies are lower with crude down 0.20. Livestock trade has cattle higher and hogs are mostly lower. Precious metals are mixed with gold down $4.30.

CORN

Corn trade is 4 cents higher at midday due to spillover support from beans and light chart buying. Rains will slow some of the remaining harvest in the Corn Belt this week which seems to be lending light support to futures. Ethanol margins remain positive and the weekly EIA report showed production down 0.7% lower on the week, with stocks up 4.6%, ethanol futures are steady after the report. Basis should see continued pressure in many areas as country elevators continue to fill up. On the December contract support is at the $3.47 20-day then the 50-day at $3.38; the 50-day is major support and the lowest major moving average. Resistance is up at the $3.59 1/4 3-month high then the $3.61 100-day.

SOYBEANS

Soybean trade is a dime higher at midday with nearby November trade edging above the $10.00 area printing another new high for the move. Chart and commercial buying has been noted for our strength, with some unwinding of long bean oil versus meal going on. Meal is $6 to $7 higher and oil is 5 to 15 points lower. Demand remains strong which should underpin trade. Harvest pressure is limiting upside but should fade as we hit the homestretch for soybeans with basis pressure increasing as harvest gets ahead of train capacity in some areas. Brazilian weather has improved for good planting progresses and early crop development, but forecasters have mixed ideas on forward forecasts. On the November soybean chart support is at the 200-day at $9.80, then the 20-day and 50-day $9.68-73. Resistance is the 100-day up at $10.23 if we can hold the midday action through the close.

WHEAT

Wheat trade is 3 to 7 cents higher across the three contracts at midday with trade following the lead of the row crops. The dollar remains near multi-month highs with light weakness this morning. Weather concerns may build with the reduced acreage in the US, and dry weather in much of the west, with forecast shifting a bit drier the last couple of days. Egypt secured 420,000 metric tons of Russian and Romanian origin wheat yesterday. On the Kansas City December chart support is at the 20-day at $4.13, with $3.97 below there. The 50-day at $4.34 is major resistance.

David Fiala is a DTN contributing analyst and the President of FuturesOne and a registered Advisor.
He can be reached at dfiala@futuresone.com
Follow Fiala on Twitter @davidfiala

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