DTN Closing Grain Comments

General Comments:

December corn gained 3 1/4 cents to $3.53 1/2 and March added 3 cents to $3.66. November soybeans rallied 13 1/2 cents to $9.84 1/4 while January jumped 13 1/2 cents to $9.94 1/2. December Chicago wheat closed 3 cents lower at $4.49 1/2, December Kansas City added 3/4 cent to $4.50 1/4, and December Minneapolis rallied 11 1/2 cents to close at $6.35 3/4. The U.S. dollar index was 0.03 lower at 92.16. December gold was $4.40 higher at $1,299.20 while December silver was $0.013 lower and December copper rallied $0.0105. The Dow Jones Industrial Average lost 34 points to 22,235. November crude oil gained $0.13 to $50.68. The October distillates (heating oil) contract was $.0021 higher, October RBOB gasoline rallied $.0239, and October natural gas gained $0.011.

For the week:

December corn closed 1 1/4 cents lower and March finished 1 1/4 cents lower. November soybeans were 15 1/2 cents higher and January was 15 1/2 cents higher. December Chicago wheat was 1/2 cent higher, December Kansas City finished 4 1/2 cents higher, and December Minneapolis wheat was 13 1/4 cents higher.

Corn:

Despite Friday's rally December corn still closed lower for the week. Support was tied to spillover noncommercial buying from soybeans, though the market was unable to generate the momentum seen in soybeans. Part of this could be due to an early-harvest weekend fast approaching, bringing with it possible commercial pressure. Also, chatter from the countryside talked of weakening basis bids in response to the rally in the futures market.

Soybeans:

Soybeans posted a solid rally Friday with commercial buying indicated for much of the day. November beans were able to break through technical price resistance at $9.77 1/2 early, leading to an extended rally into the next technical target range between $9.84 and $9.99. Friday's high by Nov beans was $9.87. Fundamentally, the market has seen announcements of new export sales almost every day this past week, helping to trim the carry in the November-to-January futures spread from last Friday's close of 10 1/4 cents to 10 cents.

Wheat:

Given the rally in soybeans, and to a lesser degree corn, winter wheat stumbling at the end of Friday's session, set a bearish tone heading into the weekend. Technically, December Chicago saw its minor (short-term) uptrend nearly come to an end, replaced by a fresh downtrend. And though no signals were established, the market is in position for such a change Monday. Fundamentally, the market is quiet with a strong 20-cent carry still seen in the December-to-March Chicago futures spread.

Todd Hultman can be reached at todd.hultman@dtn.com

Follow Todd Hultman on Twitter @ToddHultman1

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