DTN Midday Grain Comments

General Comments

The U.S. stock market indices are mixed with the Dow futures down 25 points. The interest rate products are mostly lower. The dollar index is 6 lower. Energies are mostly mixed with crude unchanged. Livestock trade is lower. Precious metals are higher with gold up $4.50.

CORN

Corn trade is narrowly mixed in quiet midday trade with the market still looking for footing going into the weekend. Long liquidation could reemerge today, but there could be some short covering going into the weekend, with the big crop tour coming up next week. Ethanol margins remain solid with the corn and energy complex moving in tandem, although ethanol futures are softer this morning. Trade will be watching for gulf export business as South American harvest wrapping up on double crop corn has basis starting to firm on export offers. On the December chart support is at $3.63 1/4 which is the new low for the move which we tested overnight and the lower Bollinger Band. Resistance is at the 10-day moving average at $3.74.

SOYBEANS

Soybean trade is narrowly mixed with wetter weather forecasted for next week when the crop tour will be looking for evidence of the USDA projected yields. Meal is flat to $1 lower, and oil is 40 to 50 points higher. Trade has found more support the second half of the week with disappointing rains in Iowa with trade starting to ease oversold conditions with fresh export demand remaining strong with China buying optional origin yesterday. On the November chart support is at the fresh low for the move at $9.21, then the 1-year low printed in June at $9.07. The 10-day moving average is chart resistance at $9.45.

WHEAT

Wheat trade is mixed at midday with wheat continuing the pattern of firmer overnight trade, before turning soft during the day session with Minneapolis wheat clinging to some light gains. The dollar rally has faded further which should help to keep the U.S. more competitive with Russian logistical bottlenecks coming forward with their big crop. Spring wheat harvest should move past the halfway point with harvest pressure starting to ease. Trade is heavily oversold, which should translate into bigger short covering at some point ahead of winter wheat planting. On the December Kansas City contract support is the $4.38 fresh low with resistance at the 10-day at $4.66.

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

(BAS)

Copyright 2017 DTN/The Progressive Farmer. All rights reserved.