DTN Midday Grain Comments

Grains Higher at Midday

David M Fiala
By  David Fiala , DTN Contributing Analyst
(DTN photo by Nick Scalise)

General Comments

The U.S. stock market indices are higher with the Dow futures up 100 points. The interest rate products are mostly higher. The dollar index is 10 points higher. Energies are firmer with crude up 0.55. Livestock trade is higher. Precious metals are mixed with gold down $4.30.

CORN

Corn trade is 1 to 2 cents higher at midday. We saw pressure Tuesday due to rain and expected rain today, but the confidence for follow-up rain next week is mixed. Temperatures should be normal to below normal, so without stressful weather market, bulls may have trouble near term. Ethanol margins have improved this week with the strength in the energy complex and lower corn futures. The weekly EIA report had production down 1.36% and stocks down 2.75%, which is lifting ethanol at midday. Corn basis remains soft with plenty of old-crop stocks still around. On the December chart, support is at the new July low made overnight at $3.80 1/2 with resistance at the 200-day at $3.88 then the 10-day at $3.90.

SOYBEANS

Soybean trade is 7 cents higher at midday with light two-sided trade early on with follow-through selling and short profit-taking. Meal is $2 higher and soybean oil is 15 higher. Cooler temperatures with some moisture was viewed as less threatening for the coming weeks. helping to add to the selling with the system bringing rain today, although early returns are a bit on the light side. We still have six important weeks of weather ahead for beans. Basis has remained steady to firm, with good nearby export demand at the gulf noted Tuesday. On the November chart, support is at the 200-day at 9.85 with resistance at the 20-day at 9.97.

WHEAT

Wheat trade is 1 to 8 cents higher at midday with trade working to bounce back from oversold conditions as the spring wheat tour continues. Most world export business remains focused on Europe with France winning the Algerian tender today. With the dollar around the yearly lows, there is hope for export U.S. improvement, but world supplies remain ample. The spring wheat tour is in the better areas of the eastern growing area today with the first-day average at 37.9 bushels per acre. Trade continues to add carry in the spring wheat, with winter wheat keeping the ample carry in place. On the December KC contract, support is the 100-day at $4.94. Resistance is at the 50-day at $5.06 then the 10-day at $5.31.

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 him on Twitter @davidfiala

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David Fiala