DTN Midday Grain Comments

MARKET SUMMARY:

Corn futures are 4 to 5 cents lower at midday Wednesday; soybean futures are 6 to 7 cents lower; wheat futures are 2 to 5 cents lower. The U.S. stock market is mixed with the S&P 20 points higher. The U.S. Dollar Index is 35 points lower. The interest rate products are weaker. Energy trade is mixed with crude 1.80 lower and natural gas .05 higher. Livestock trade is weaker but rebounding from early selling. Precious metals are sharply higher with gold 35.00 higher.

CORN:

Corn futures are 4 to 5 cents lower at midday with early mixed action fading as we look to consolidate the upper end of the range further after recent strength. Ethanol margins will see some pressure as summer blends phase out. The weekly EIA ethanol report is delayed until Thursday. The forecast looks to stay cooler this week with wetter weather expected to persist for many. Weekly crop progress showed conditions down 2% to 69% good to excellent; 9% poor to very poor; 58% dented versus 60% on average; 15% mature versus 14% on average. 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 6 to 7 cents lower at midday with light selling continuing as oil leads the product complex lower with little other fresh news. Meal is narrowly mixed and oil is 60 to 70 points lower. The forecast looks to be drier to the east with cooler temps. Weekly crop progress showed good to excellent 4% lower to 65%; 10% poor to very poor; 94% setting pods, same as average; 11% dropping leaves versus 10% on average. Basis will likely remain flat to soft in the short term. The daily export wire saw 185,000 metric tons of meal sold to Philippines. On the November chart, resistance is the Upper Bollinger Band at $10.77 with the 20-day moving average as support at $10.33.

WHEAT:

Wheat futures are 2 to 5 cents lower with quiet trade chopping just off the low end of the range at midday. Spring wheat harvest was rated at 72% completed versus 71% on average with the first planting report expected next week with the Plains remaining plenty wet. MATIF wheat is flat at the low end of the range as well with the firmer euro limiting buying enthusiasm. On the KC December chart, resistance is the 20-day moving average at $5.24, with the fresh low at $5.06 3/4 as support.

David Fiala can be reached at dfiala@futuresone.com

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DTN Midday Grain Comments