DTN Midday Grain Comments

General Comments

The U.S. stock market indices are lower; the Dow futures are down 35. The interest rate products are higher. The dollar index is 28 lower. Energies are mixed with crude up 0.10. Livestock trade is mostly lower. Precious metals are lower with gold down $21.

CORN

Corn trade is right around unchanged at midday with trade staying near the levels seen all week; the trading range has only been 2 1/2 cents. News will be light until next Friday when the quarterly grain stocks report will be released, so harvest results are what the market should be talking about the rest of the week and next week. Both better than expected and worse than expected have been in market discussions. Ethanol margins are near unchanged this morning with corn and ethanol both near unchanged. The weekly export sales were on the low end of the range of expectations at 527,900 metric tons with sales for new marketing year lagging behind the 2016 pace. On the December chart support is at the $3.44 1/4 August low with resistance at $3.53, where we find the 10-day and 20-day moving averages.

SOYBEANS

Soybean trade is flat to a penny higher at midday with trade staying firmly range bound. Meal is $1 to $2 higher and oil is 45 to 55 points lower. Trade is watching demand and harvest results closely as China secured another 132,000 metric tons. The weekly export sales were very strong at 2.34 million metric tons, 172,700 metric tons of old and new crop meal, and 8,500 of old and new crop oil. November futures keep avoiding sustained pressure following the negative USDA report last week, but we find selling interest in the $9.75-$9.80 area. Yield numbers as harvest progresses should give us some direction the rest of the week before rains slow things into next week. The export news is expected to remain a positive factor for futures. On the November chart support is at the 10-day at $9.64, then the 20-day at $9.57. Resistance is at the $9.79 200-day.

WHEAT

Wheat trade is flat to 5 cents higher at midday with spring wheat showing the mostly strength with trade testing the higher end of the recent range yet again. Australia continues to see some struggles as the crop emerges from dormancy, while the large Russian crop will continue to keep pressure on the ability of the US to compete on the world market. Egypt is starting to look around for cargos again with the advantage remaining with the Black Sea. The weekly export sales remained soft at 307,200 metric tons. On the December Kansas City contract 20-day at $4.39 is support the 50-day at 4.69 is 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 him on Twitter @davidfiala

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