DTN Midday Grain Comments

MARKET SUMMARY:

Corn futures are flat to a penny higher at midday Tuesday; soybean futures are 5 to 6 cents lower; wheat futures are flat to 4 cents higher. The U.S. stock market is mixed at midday with the S&P off 25 but well off early day selling. The U.S. Dollar Index is 10 points lower. The interest rate products are firmer. Energy trade is weaker with crude off 1.25. Livestock trade has cattle firmer after another set of fresh highs early in the day with hogs off sharply again. Precious metals are missed with gold up 22.00, holding near all time highs.

CORN:

Corn futures are flat to a penny higher at midday with trade seeing light buying after touching a short-term low overnight after China announced some retaliatory measures. Ethanol margins should remain solid despite the unleaded weakness with support from fresh harvest bushels flowing into plants. Harvest should continue to press on as we are likely near the halfway point nationally with enough open weather. Weekly export inspections eased a little at 1.130 million metric tons (mmt), but we continue to run at 165% of last year’s pace. On the December chart, support is at $4.09 1/2, the area of our fresh lows, then the late August low at $4.03 1/2 with resistance the 20-day moving average at $4.20.

SOYBEANS:

Soybean futures are 5 to 6 cents lower at midday with action fading back toward $10.00 after the China response overnight. Meal is flat to 1.00 lower and oil is 20 to 30 points lower. Harvest should make good additional progress this week as we should be close to halfway done nationally. South American weather looks to be a nonissue into early planting for Brazil with early pace quick so far. Weekly export inspections improved to 994,008 metric tons (mt) but we are at 74% of last year’s pace. On the November chart, resistance is at the 20-day moving average at $10.19, then the upper Bollinger Band at $10.43. November chart support is at $10.02, the overnight low, then the Oct. 1 low of $9.93 3/4.   

WHEAT:

Wheat futures are flat to 4 cents higher at midday with light short-covering from fresh lows with little other fresh news to drive action. Warmer weather should help planting and emergence continue to catch up overall for winter wheat domestically. MATIF wheat remains on the lower end of the range as well with light buying. Weekly export inspections stayed rangebound at 444,138 mt with pace holding at 118% year-to-date. Southern Hemisphere wheat continues to develop well. On the KC December chart, support is at the daily low of $4.77 1/2 with resistance the 20-day moving average at $4.99.  

David Fiala can be reached at dfiala@futuresone.com

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