DTN Closing Grain Comments

And Little Wheat Shall Lead Them

(DTN illustration by Nick Scalise)

General Comments:

December corn was 1 3/4 cents higher at $3.54 with March 1 1/2 cents higher at $3.66 3/4. November soybeans finished 2 cents higher at $9.65 1/2 with January up 2 1/4 cents at $9.76 1/4. December Chicago wheat closed 7 3/4 cents higher at $4.61 1/2, December Kansas City gained 6 3/4 cents to $4.59, and December Minneapolis added 3 cents to close at $6.49. The U.S. dollar index was 0.34 higher at 93.35 while December 30-year T-bonds lost 1 27/32 to 152'29. December gold was $14.30 lower at $1,287.40 with December silver $0.078 lower and December copper up $0.0110. The Dow Jones Industrial Average gained 48 points to 22,332. November crude oil gained $0.19 to $52.07. The October distillates (heating oil) contract was $0.0053 lower, October RBOB gasoline fell $0.0468, and October natural gas rallied $0.057.

Corn:

December corn continues to consolidate, or in other words, maintain its sideways pattern between its contract low of $3.44 1/4 and short-term technical resistance on its daily chart at $3.61 1/2. For now, the contract is holding near the midpoint of that range due to a lack of sustained buying interest from either commercial or noncommercial traders. Harvest continues, with yield reports slowly starting to trickle in. Also, traders could move to the sidelines Thursday ahead of Friday's USDA Quarterly Stocks report that is expected to contain a large number for corn (as of September 1).

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Soybeans:

November soybeans posted a 10 1/2-cent trading range Wednesday, moving 5 1/2 cents lower early before staging a second-half (of the day) rally. Still, trade volume (futures only) was well below what was seen during Tuesday's sell-off, indicating traders are more interested in the market going lower than higher. Commercial traders seemed to go to the sidelines after putting early pressure on the market. Wednesday morning saw USDA announce a sale of 132,000 mt of 2017-2018 soybeans to China, though this provided little spark to the market.

Wheat:

Just when one thinks the wheat market is set to fold its tent, off it goes on a lightly traded rally. The December Chicago contract erased Tuesday's sell-off, testing resistance on its daily chart at $4.62 1/2 late in the day. Renewed commercial buying was indicated by the weakening carry of the December-to-March Chicago futures spread, continuing the trend toward weaker carry seen over the last few weeks. Early overnight trade could see the market try to rally on follow-through buying.

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

Follow him on Twitter @DarinNewsom

(BAS)

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