DTN Midday Grain Comments

MARKET SUMMARY:

Corn futures are 3 to 4 cents higher at midday Friday; soybean futures are 1 to 2 cents higher; wheat futures are 1 to 2 cents higher. The U.S. stock market is weaker with the S&P 30 points lower. The U.S. Dollar Index is 80 points lower. The interest rate products are firmer. Energy trade is weaker with crude 1.90 lower and natural gas .01 lower. Livestock trade is mixed with hogs leading. Precious metals are firmer with gold 38.00 higher.

CORN:

Corn futures are 3 to 4 cents higher at midday with trade again testing the recent highs Friday morning with follow-through buying after the good close Thursday. Ethanol margins are seeing pressure from firmer corn and weaker unleaded values. The forecast looks to stay cooler this week with warmer temps to return next week to boost early harvest progress potential. Weekly export sales were solid at -280,900 metric tons (mt) of old crop and 2.117 million metric tons (mmt) of new. Basis should continue to drift lower into harvest. On the December chart, the 20-day moving average at $4.09 is support with the July high at $4.30 the next level of resistance.

SOYBEANS:

Soybean futures are 1 to 2 cents higher at midday as we hang right around nearby resistance levels with meal leading the product side of the complex. Meal is 1.50 to 2.50 higher and oil is 35 to 45 points lower. The forecast looks to be drier to the east with cooler temps giving way to warmer temps next week to push more acres to the finish. Basis will likely remain flat to soft in the short term. The daily export wire saw sales of 123,000 mt to unknown with 204,650 mt also marked as received by unknown. Weekly export sales were mixed at -23,800 mt old crop and 818,500 mt of new; -4,300 of old meal and 145,700 of new meal; -100 of old oil and 1,800 of new oil. On the November chart, resistance is the 20-day moving average as support at $10.37 with the Lower Bollinger Band at $10.06 as support.

WHEAT:

Wheat futures are 1 to 2 cents higher at midday with the weaker dollar helping action to find light short-covering as we continue to grind along the lower end of the range. Wet weather on the Plains will likely slow early planting while spring wheat harvest should continue to wind down. MATIF wheat is flat to lower with the euro firming as the dollar fades back to the lower end of the range. Weekly export sales were softer at 313,000 mt. On the KC December chart, resistance is the 20-day moving average at $5.21, with the fresh low at $5.01 3/4 as support.

David Fiala can be reached at dfiala@futuresone.com

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DTN Midday Grain Comments