Corn, Soybean Futures Higher at Midday Friday; Wheat Flat-Higher

MARKET SUMMARY:

Corn futures are 1 to 2 cents higher at midday Friday; soybean futures are 6 to 7 cents higher; wheat futures are flat to 1 cent higher. The U.S. stock market is mixed at midday with the S&P off 12. The U.S. Dollar Index is 30 points lower. The interest rate products are weaker. Energy trade is mixed with crude flat .20 and natural gas is up .05. Livestock trade has cattle sharply lower after the president’s beef deal comments while hogs are flat. Precious metals are weaker with gold off 50.00, after scoring fresh highs again overnight.

CORN:

Corn futures are 1 to 2 cents higher at midday with trade working to consolidate past the first level of resistance we cleared Thursday with mostly quiet action into another harvest weekend. Ethanol margins should see a little pressure from firmer corn with unleaded holding the lower end of the range to squeeze blenders. Harvest should continue to press on as we get to the back half of harvest nationally. Fresh export sales remain unreported with the government shutdown although a strong pace remains expected. 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 $4.19, which we cleared Thursday, with the summer gap area at $4.33 the next round higher.

SOYBEANS:

Soybean futures are 6 to 7 cents higher at midday with meal leading the product complex along with positive comments on coming trade talks adding enthusiasm. Meal is 3.00 to 4.00 higher and oil is flat to 10 points higher. Harvest should make good additional progress this week as we should be heading to the homestretch. South American weather looks to be a nonissue in the short term as planting moves forward. On the November chart, resistance is at the 20-day moving average at $10.13, which we are just above at midday, then the upper Bollinger Band at $10.28. November chart support is at $10.00, then the Oct. 1 low of $9.93 3/4.   

WHEAT:

Wheat futures are flat to a penny higher with trade continuing to hold just above the nearby lows with sustained short-covering still limited but we are off the early lows. Weather should remain mostly favorable for the Plains in the short term. MATIF wheat remains on the lower end of the range as well with light buying Friday. 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 $4.96.  

David Fiala can be reached at dfiala@futuresone.com

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