DTN Midday Grain Comments
Corn futures are 1 to 2 cents lower; soybean futures are 4 to 5 cents lower and wheat futures are 2 to 4 cents lower.
MARKET SUMMARY:
Corn futures are 1 to 2 cents lower; soybean futures are 4 to 5 cents lower and wheat futures are 2 to 4 cents lower. The U.S. stock market is mixed, with the S&P 24 points higher. The U.S. Dollar Index is 25 points higher. The interest rate products are weaker. Energy trade is firmer with crude 1.10 higher and natural gas .03 lower. Livestock trade is mostly higher, with cattle sharply lower. Precious metals are weaker, with gold 8.00 lower.
CORN:
Corn futures are 1 to 2 cents lower in quiet trade at midday as we continue to chop along the upper end of the recent range, as we wait for further harvest expansion. The weekly ethanol report showed production up by 30,000 barrels per day, with stocks up 200,000 barrels on the week. The forecast looks to warm up later this week to move early harvest ahead south of I-80. The daily wire was quiet again today, with sales expected to be in the 600,000 to 900,000 metric ton range tomorrow. Basis should continue to drift lower into harvest. On the December chart, the 20-day at $4.11 is support, with the July high at $4.30 the next level of resistance.
SOYBEANS:
Soybean futures are 4 to 5 cents lower at midday with product action soft, while we wait for further clarity on early harvest and world trade developments. Meal is 2.50 to 3.50 lower and oil is narrowly mixed. The forecast warms up through this week for most, which should push maturity a bit and get early harvest underway. Basis will likely remain flat to soft in the short term. The daily wire was quiet again, with weekly sales expected to be in the 400,000 to 600,000 metric ton range tomorrow. On the November chart, resistance is the 20-day at $10.40 with the Lower Bollinger Band at $10.21 as support.
WHEAT:
Wheat futures are 2 to 4 cents lower at midday, with action continuing to chop along the lower end of the range after we failed to extend Monday’s gains yesterday. Wet weather on the plains should fade, which should boost early planting with spring wheat harvest wrapping up. MATIF wheat is lightly weaker, as it continues to hold the lower end of the range as well. Weekly export sales are expected to be in the 200,000 to 400,000 metric ton range tomorrow. On the KC December Chart, resistance is the 20-day at $5.18, with the fresh low at $5.01 3/4 as support.
David Fiala can be reached at dfiala@futuresone.com
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