DTN Closing Grain Comments

By Darin Newsom
DTN Senior Analyst

General Comments:

December corn was 1 3/4 cents lower at $3.51 with March 1 1/2 cents lower at $3.62 1/4. November soybeans finished unchanged at $9.75 1/2 with January up 1/2 cent at $9.86 1/4. December Chicago wheat closed 2 1/2 cents lower at $4.35 1/2, December Kansas City dipped 1/2 cent to $4.33 1/2, and December Minneapolis gained 2 cents to $6.21 3/4. The U.S. dollar index was 0.23 lower at 93.71 while December 30-year T-bonds lost 25/32 to 150'29. December gold was $1.10 lower at $1,277.20 with December silver $0.041 lower and December copper down $0.0155. The Dow Jones Industrial Average fell 106 points to 23,335. December crude oil lost $0.40 to $52.07. The November distillates (heating oil) contract was $0.0094 lower, November RBOB gasoline added $0.0065, and November natural gas dropped $0.041.

Corn:

Corn closed lower following a quieter, by trade volume, session. There really wasn't much fundamentally or technically to drive the market Wednesday, with mixed futures spreads indicating a general lack of interest from commercial traders. From a technical point of view, the lower close in the futures market likely put on hold the establishment of a bullish short-term technical signal in the DTN National Corn Index (national average cash price) when it is calculated Wednesday evening. The lower close could also lead to light pressure early in the overnight session.

Soybeans:

November soybeans closed unchanged for the day as commercial selling erased an early rally. The carry in the November-to-January futures spread widened to as much as 11 cents over the course of the session. Technically, Wednesday's session could open the door to more short-term pressure in both the November and January contracts. If so, both could quickly test trendline support on daily charts at $9.73 1/2 and $9.86 1/2 overnight.

Wheat:

The wheat complex rallied early during Wednesday's session, but couldn't generate any bullish momentum over the latter part of the day. This allowed commercial selling to push Chicago lower, with spillover pressure dropping Kansas City. Minneapolis spring wheat ignored the goings on in winter wheat for much of the day, with renewed commercial buying pushing the market to a higher close. Overnight trade could open mixed, with traders keeping an eye on both the U.S. and Canadian dollar markets.

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

Follow him on Twitter @DarinNewsom

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