DTN Closing Grain Comments

By Darin Newsom
DTN Senior Analyst

General Comments:

December corn was 1 1/4 cents lower at $3.48 1/4 with March 1 cent lower at $3.61 1/4. November soybeans finished 3 cents higher at $9.58 1/4 with January up 2 3/4 cents at $9.68 3/4. December Chicago wheat closed 6 cents lower at $4.42, December Kansas City lost 5 3/4 cents to $4.36, and December Minneapolis slipped 1 1/4 cents to close at $6.11. The U.S. dollar index was 0.17 lower at 93.45 while December 30-year T-bonds lost 2/32 to 152'18. December gold was $2.90 higher at $1,277.50 with December silver $0.015 lower and December copper down $0.0050. The Dow Jones Industrial Average gained 28 points to 22,669. November crude oil fell $0.33 to $50.09. The November distillates (heating oil) contract was $0.0253 higher, November RBOB gasoline rallied $0.0202, and November natural gas gained $0.043.

Corn:

At least December corn was able to post a 3 1/2-cent trading range Wednesday. Of course, much of that was due to a midday sell-off that saw the contract trade below minor (short-term) trend-line support at $3.48 1/4 on its way to a low of $3.46. It's possible light commercial selling occurred over the course of the day, with the December appearing to lose a 1/4 cent to the March contract, but trade volume was so light closing prices might have been skewed. Thursday's session could see a little more activity, being one day closer to a harvest weekend.

Soybeans:

Soybeans broke out of an early nap with a solid midday rally that saw the November contract rally as much as 6 1/2 cents. Technically, November beans continue to find solid buying interest as it tests short-term price support at $9.54, hitting a low of $9.52 3/4 during Wednesday's session. Commercial buying provided support to the rally over the latter stages of the session, the carry in the November-to-January futures spread weakening slightly. With social media chatter that China has slowed its soybean imports, traders may actually pay attention to Thursday's weekly export shipment number (for the week ending Thursday, Sept. 28).

Wheat:

Wednesday's session was a reminder of what happens to wheat when commercial buying turns to selling. Tuesday's solid rally, led by commercial buying, evolved into Wednesday's sell-off as these same traders turned bearish. Technically, Chicago wheat remains in a short-term downtrend, so losing some of the recent bullish enthusiasm wasn't all that surprising. There is little fresh news to move the market at this time, though traders could be watching weather maps as farmers work to get the winter crop planted. Thursday's session could see more of the same.

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

Follow Darin Newsom on Twitter @DarinNewsom

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