DTN Closing Grain Comments

Red Beans and Green Rice

(DTN illustration by Nick Scalise)

General Comments:

December corn was down 3 1/4 cents at $3.51 1/2 with March 3 1/4 cents lower at $3.64. November soybeans finished 1 cent lower at $9.67 1/2 with January down a penny at $9.78. December Chicago wheat closed 5 1/2 cents lower at $4.43 1/2, December Kansas City fell 3 3/4 cents to $4.42 1/4, and December Minneapolis dipped 1/4 cent to close at $6.21 1/4. The U.S. dollar index was 0.32 higher at 92.17. December gold was $16.40 lower at $1,308.80 while December silver was $0.546 lower and December copper gained $0.0180. The Dow Jones Industrial Average added 75 points to 22,343. October crude oil added $0.03 to $49.93. The October distillates (heating oil) contract was $0.0192 lower, October RBOB gasoline rallied $0.0126 and September natural gas gained $0.124.

Corn:

Corn traded lower throughout the session, showing little sign of generating buying interest as the day wore on. There was little fresh news to get traders excited, with harvest expected to slowly get rolling and old-crop stocks moving to town. Monday morning's weekly export inspection number (for the week ending Thursday, Sept. 14) came in at a relatively unspectacular 26.6 million bushels, putting the new marketing year two-week total at 53.3 mb. The overnight session could see light follow-through selling early.

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Soybeans:

Soybean contracts traded higher through the early part of the session, before losing bullish momentum near midday. While initially it looked to be nothing more than a normal noon swoon (temporary downward move against the earlier rally), buyers never came back to the market. This allowed November beans to close within sight of the session low after trading as much as 7 3/4 cents higher early. Given the late break it would not be surprising to see renewed selling interest, albeit light, early in the overnight session.

Wheat:

Winter wheat markets closed lower Monday, failing to generate much of any buying interest over the course of session. The most notable feature of the Chicago market was the renewed commercial selling indicated by the stronger carry in the December-to-March futures spread. December closed 5 1/2 cents lower while March fell 4 1/4 cents, putting the spread at 20 1/4 cents at the close. Regardless of what the CME's variable storage rate (VSR) calculations show, this is a bearish amount of carry in the nearby spread. As with corn and soybeans, it would not be surprising to see Chicago wheat under pressure early in the overnight session.

Darin Newsom can be reached at darin.newsom@dtn.com

Follow Darin Newsom on Twitter @DarinNewsom

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