DTN Before The Bell Grain Comments

Beans Break Out

(DTN photo by Greg Horstmeier)

Morning CME Globex Update:

Soybeans led the overnight rally through early Friday morning. Corn and wheat trailed, with the latter extending its short uptrend while the former continues to flounder. Outside markets saw gold try to gain back some of Thursday's loss while energies were mostly higher. Financial markets were under pressure.

Other Markets:

DJIA futures Lower
U.S. Dollar Index: Lower
Gold: Higher
Crude Oil: Lower

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Corn:

Spillover buying from soybeans supported corn early Friday, allowing contracts to finish overnight trade near session highs. Volume (futures only) was relatively light at 8,500 contracts. If soybeans can maintain bullish momentum through Friday's session, corn could try to climb higher. However, late commercial selling is possible heading into an early harvest weekend.

Soybeans:

November soybeans saw a bullish technical breakout on its daily chart, extending the minor (short-term) uptrend beyond the previous set of highs near $9.77 1/2. This now has the contract in position to test the target range of $9.84 to $9.99, and possibly reach as high as $10.17. Futures spreads indicate commercial buying overnight, though it will be interesting to see if that is maintained over the course of Friday's session. Light, early harvest pressure could be seen heading into the weekend. USDA announced a sale of 190,000 metric tons of 2017-18 soybeans to Mexico.

Wheat:

The wheat complex finished overnight trade on the plus side of unchanged, though buying interest seemed faint in Chicago. Volume (futures only) came in at 6,700 contracts as December Chicago slowly makes its way toward the upside target of $4.62 1/2. Fundamentally, there is little fresh news, though the latest U.S. Drought Monitor continues to show adverse planting conditions across much of the U.S. Southern Plains (HRW) growing area.

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

Follow Darin Newsom on Twitter @DarinNewsom

(BAS)

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