DTN Before The Bell Grain Comments

By Darin Newsom
DTN Senior Analyst

Morning CME Globex Update:

The grain and oilseed complex held its gains through Wednesday's early morning hours, though activity was quiet. There was little fresh news to provide direction, though DJIA futures didn't slip back below unchanged. Energies and metals remained under pressure while softs, led by December cotton, firmed.

Other Markets:

DJIA futures	Lower
U.S. Dollar Index:	Lower
Gold:	Lower
Crude Oil:	Lower

Corn:

The corn market didn't do much Wednesday morning, though the December contract was able to finish the overnight session on its high of $3.53 3/4. This puts the contract squarely on short-term, trend-line resistance (discussed in Wednesday morning's Early Word Grains commentary). Four key factors that could continue to bring noncommercial buying to the market is: Corn's low price (both futures and cash), continued low market volatility, bullish seasonal tendencies, and noncommercial traders already holding a net-short futures position.

Soybeans:

The soybean market finished overnight trade higher, with contracts fractionally off session highs. Trade volume was decent, hinting at a possible active day Wednesday. A concern for market bulls remains the strengthening carry in futures spreads, as mentioned in Wednesday morning's Early Word Grains commentary, with the November-to-March forward curve now bearish. Technically, the market looks to be growing more bullish, short-term.

Wheat:

Winter wheat contracts finished the overnight session higher while Minneapolis dipped below unchanged early Wednesday morning. The Chicago December contract is growing more bullish on both its daily (short-term) and weekly (intermediate-term) charts, discussed in greater detail in Wednesday morning's Early Word Grains commentary. Fundamentally, there isn't much fresh news to build on, though the carry in Chicago futures spreads continues to weaken.

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

Follow Darin Newsom on Twitter @DarinNewsom

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