DTN Midday Grain Comments

DTN Midday Grain Comments

MARKET SUMMARY:

Corn futures are 1 to 2 cents lower at midday Tuesday; soybean futures are 14 to 15 cents lower; wheat futures are 9 to 10 cents lower. The U.S. stock market is weaker with the S&P 85 points lower. The U.S. Dollar Index is 50 points higher. The interest rate products are weaker. Energy trade is mixed with crude 1.30 higher and natural gas .08 lower. Livestock trade is firmer with cattle leading. Precious metals are sharply higher with gold 62.00 higher.

CORN:

Corn futures are 1 to 2 cents lower with trade firming back from early selling to hold just below the Friday highs. Ethanol margins will see some pressure as summer blends phase out. The forecast looks to stay cooler into September with wetter weather expected to persist for many. The weekly crop progress report is expected to show steady conditions and development and harvest in line with the 5-year average. Weekly export inspections were strong at 1.407 million metric tons (mmt) to finish the marketing year at 129% of the prior year. Basis should continue to drift lower into harvest. On the December chart, the 20-day moving average at $4.05 1/2 is support with the July high at $4.30 the next level of resistance.

SOYBEANS:

Soybean futures are 14 to 15 cents lower at midday with broad selling amid the stronger dollar and trade concerns heading into early harvest. Meal is 5.00 to 6.00 lower and oil is 35 to 45 points higher. The forecast looks to be drier to the east with cooler temps. Weekly crop progress is expected to show steady conditions and development remaining in line with the 5-year average. Basis will likely remain flat to soft in the short term. Weekly export inspections were good seasonally at 472,914 metric tons (mt) to finish the year at 111% of the year prior. On the November chart, resistance is the Upper Bollinger Band at $10.77 with the 20-day moving average as support at $10.28.

WHEAT:

Wheat futures are 9 to 10 cents lower with the stronger dollar helping to push trade back to the low end of the range after the solid finish to the week with little other fresh news to encourage buyers. Spring wheat harvest should be closing in on two-thirds complete with winter wheat drilling to get underway with plentiful moisture in the Southern Plains. MATIF wheat is weaker after fading back to the low end of the range Monday. Weekly export inspections were very good at 802,780 mt with year-to-date pace at 115%. On the KC December chart, resistance is the 20-day moving average at $5.31, with the fresh low at $5.06 3/4 as support.

David Fiala can be reached at dfiala@futuresone.com

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