DTN Midday Grain Comments
Corn futures are 4 to 5 cents lower at midday Wednesday; soybean futures are 7 to 8 lower; wheat futures are 4 cents lower to 2 cents higher.
DTN Midday Grain Comments
MARKET SUMMARY:
Corn futures are 4 to 5 cents lower at midday Wednesday; soybean futures are 7 to 8 lower; wheat futures are 4 cents lower to 2 cents higher. The U.S. stock market is firmer with the S&P 42 points higher. The U.S. Dollar Index is 44 points lower. The interest rate products are weaker. Energy trade is firmer with crude .60 higher and natural gas .05 higher. Livestock trade has cattle scoring fresh highs again and hogs lagging. Precious metals are mixed with gold 3.00 lower.
CORN:
Corn futures are 4 to 5 cents lower at midday with trade again scoring fresh lows. December has faded through the $4.00 area with big yield ideas and selling momentum keeping the pressure on as we get more oversold. Weekly ethanol production was 15,000 barrels per day lower and stocks were 100,000 barrels lower. The forecast looks to remain in line with recent days with good moisture and potentially warmer second week weather. Weekly export sales are expected to be in the 1.0 million metric tons (mmt) to 1.2 mmt range combined. Basis looks to remain rangebound to softer in the short term. On the September chart, the 20-day moving average at $3.96 is resistance with the fresh low at $3.76 as support.
SOYBEANS:
Soybean futures are 7 to 8 cents higher at midday with early gains fading again as meal momentum fades further and little other fresh news appears to entice buyers. Meal is 4.00 to 5.00 lower and oil is 25 to 35 points higher. The forecast is expected to bring some warmer weather into the middle of the month with moisture chances remaining good into podfill. Basis will likely remain flat to soft in the short term. Weekly export sales are expected to be in the 300,000 to 600,000 metric ton (mt) range. On the September chart, resistance is the 20-day moving at $9.93 and the fresh low at 9.63 as support.
WHEAT:
Wheat futures are 4 cents lower to 2 cents higher with trade pressing further into the lows on the winter wheat with KC spreads gaining lightly at midday as we get more oversold overall. Spring wheat harvest should continue to expand in the short term as it works around storms with Plains moisture likely to remain adequate until early planting. MATIF wheat is mixed as it remains near the lows as well. Weekly export sales are expected to be in the 250,000 to 450,000 mt range. On the KC September chart, resistance is the 20-day moving average at $5.24, with the fresh low at $5.03 1/4 as support.
David Fiala can be reached at dfiala@futuresone.com
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