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DTN Midday Grain Comments 09/20 11:34
Corn and Soybeans Lower at Midday; Wheat Flat to Higher
Corn futures are 3 to 4 cents lower; soybean futures are 6 to 7 cents lower
and wheat futures are flat to 3 cents higher.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
Corn futures are 3 to 4 cents lower; soybean futures are 6 to 7 cents lower
and wheat futures are flat to 3 cents higher. The U.S. stock market is weaker
at midday with the S&P 32 points lower. The dollar index is 40 points higher.
The interest rate products are weaker. Energy trade has crude .15 higher and
natural gas is up 0.02. Livestock trade mostly higher with cattle leading.
Precious metals are mixed with gold up 24.50.
CORN:
Corn futures are 3 to 4 cents lower at midday with nearby action fading to
support levels as we head into the weekend with harvest pressure likely to
build further towards the close. Ethanol margins should find support from corn
pulling back while unleaded consolidates 10-15 cents above recent lows to
support blenders. Weather looks to mostly keep maturity moving forward ahead of
weekend rains that are likely to idle harvest in the western belt for a bit.
Basis action will likely continue to drift lower. The daily export wire was
quiet to close the week. On the December chart the 20-day at 4.03 is support
which we are testing at midday with the next round up at the Upper Bollinger
Band at $4.20.
SOYBEANS:
Soybeans futures are 6 to 7 cents lower at midday with meal the downside
leader on products with bigger harvest pressure into the weekend. Meal is 4.50
to 5.50 lower and oil is flat to 10 points lower. Warmer weather should
continue to push maturity in much of the belt with early harvest likely to make
good progress before getting rained out this weekend. Better rains will be
needed in Brazil to get early planting underway with the immediate forecast
remaining on the dry side and improvement into early October showing in the
extended forecast. The daily wire saw China return for another 121,000 metric
tons of beans. Basis should continue to drift lower with early harvest bushels
in bound. The November chart support is at the 20-day moving average at $10.02,
with the Upper Bollinger Band at 10.30 as the next level of resistance.
WHEAT:
Wheat futures are flat to 3 cents higher at midday with trade working to
consolidate after fading back into the first support levels with broad selling
this week, and little other fresh news to induce buyers. Northern Hemisphere
harvest should be effectively wrapped up now. Early plains wheat drilling is
under way with some wetter conditions expected into the weekend which should
boost early emergence into the end of the month. Black sea news has been
quieter all week with Russian export prices staying flat. The dollar scored
continues to hold above the lows, with MATIF wheat narrowly mixed as it
consolidates as well. On the KC December Chart resistance is the 20-day at
$5.71 that we faded through yesterday, with the Lower Bollinger Band at $5.33
the longer-term level of support.
David Fiala can be reached at dfiala@futuresone.com
Follow him on social platform X @davidfiala
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