DTN Closing Grain Comments

Beans Bust a Move

(DTN illustration by Nick Scalise)

General Comments:

December corn gained 1/2 cent to $3.50 and March added 3/4 cent to $3.63 1/4. November soybeans rallied 4 cents to $9.72 1/4 while January gained 4 cents to $9.83. December Chicago wheat closed 2 3/4 cents higher at $4.43 1/2, December Kansas City added 2 1/2 cents to $4.36 3/4, and December Minneapolis rallied 8 1/4 cents to close at $6.23 3/4. The U.S. dollar index was 0.10 lower at 93.82 with December 30-year T-bonds off 7/32. December gold was $3.00 higher at $1,276.30 while December silver was $0.162 higher and December copper lost $0.0220. The Dow Jones Industrial Average dipped 33 points to 22,742. November crude oil fell $1.45 to $49.34. The November distillates (heating oil) contract was $.0372 lower, November RBOB gasoline lost $.0530, and November natural gas slipped $0.006.

For the week:

December corn closed 5 1/4 cents lower and March finished 4 1/2 cents lower. November soybeans were 4 cents higher and January was 4 1/2 cents higher. December Chicago wheat was 4 3/4 cents lower, December Kansas City finished 6 cents lower, and December Minneapolis wheat was unchanged.

P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]

Corn:

If you happened to be on vacation this past week and are checking Friday's Closing Comments on DTN for an update on corn, you didn't miss much. For the week the December contract posted a trading range of 10 1/4 cents, closing 5 1/4 cents lower for the week. Honestly, the range nor the weekly change seemed that wide. The market continues to wait on harvest, with early yield results basically falling in the "better than expected" category, offsetting potential concerns over ongoing rains across the U.S. Midwest. It's possible that Sunday night's open could finally show some bullish enthusiasm, particularly if the Midwest stays wet over the weekend and Tropical Storm Nate makes landfall and brings more bad weather up through the Southeastern U.S.

Soybeans:

November soybeans extended the day's rally late in the session, posting a new high of $9.73 3/4 before falling back at the close. While the market looks to be building technical strength on its daily charts, futures spreads continue to trend down reflecting a strengthening carry and more bearish commercial outlook. Ultimately this could cool the coals under the market, but at least heading into the weekend soybeans showed signs of life. Traders could be concerned about the same weather issues corn is facing, persistent rains over the U.S. Midwest and this weekend's path of Tropical Storm Nate. Though the commercial side of the market, through the previously mentioned futures spreads, is showing no real concern about production decreases once harvest builds momentum, trends do change. And this weekend's weather could prove to be the catalyst for such a change.

Wheat:

Minneapolis spring wheat posted another solid rally Friday, supported by buying from both commercial and noncommercial traders. The latter continue to hold the market above technical price support at $6.08, while the latter have stemmed the tide, at least temporarily, of the downtrend (strengthening carry) the December-to-March futures spread is showing. The strength of the spring wheat market provided spillover support to winter wheat markets, with both Chicago and Kansas City rallying on noncommercial buying interest. Futures spreads were mixed indicating the commercial side of both markets were little interested in the day's proceedings.

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

Follow Darin Newsom on Twitter @DarinNewsom

(BAS)

P[L2] D[728x90] M[320x50] OOP[F] ADUNIT[] T[]
P[R1] D[300x250] M[300x250] OOP[F] ADUNIT[] T[]
P[R2] D[300x250] M[320x50] OOP[F] ADUNIT[] T[]
DIM[1x3] LBL[] SEL[] IDX[] TMPL[standalone] T[]
P[R3] D[300x250] M[0x0] OOP[F] ADUNIT[] T[]