DTN Midday Grain Comments 09/27 11:03
Corn, Soybean Futures Higher at Midday; Wheat Lower
Corn trade is 5 to 6 cents higher; beans are 7 to 8 cents higher and wheat
trade is 3 to 9 cents lower.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is mixed with the S&P 500 up 2. The dollar index is 35
points higher. Interest rate products are mixed. Energies are firmer with crude
3.20 higher and natural gas .08 higher. Livestock trade is mostly lower with
cattle the downside leader. Precious metals are weaker with gold 22.00 lower.
Corn trade is 5 to 6 cents higher at midday with trade once again pressing
into resistance levels with trade needing to consolidate to boost sentiment
with harvest continuing to expand. Ethanol margins will likely stay sideways
with the weekly report showing production up by 29,000 with stocks rising
367,000 barrels per day. The daily wire was quiet yesterday with expectations
for fresh sales limited. Basis should resume a drift lower for early harvest
with better pace expected into the weekend. On the report Friday trade is
looking for stocks at 1.429 billion. On the December chart, the 20-day at $4.80
3/4 remains as resistance which we are above at midday, with the recent low at
$4.67 3/4 as support
Soybean trade is 7 to 8 cents higher at midday with trade working to
consolidate back over the $13.00 area nearby with action a bit off the
overnight highs with position squaring and harvest progress to continue short
term. Meal is .50 to 1.50 lower and oil is 100 to 110 points higher. The daily
wire has been quieter in recent days. Basis will likely stay flat as harvest
slows a bit with the river system still declining in flows. South American
weather shouldn't limit planting progress much short term. On the report, trade
is looking for stocks at 242 million bushels. November chart support is the
fresh low at $12.84 1/2, with resistance the 20-day at $13.40.
Wheat trade is 3 to 9 cents lower with trade scoring fresh lows again with
the stronger dollar and spread action keeping trade defensive. Matif wheat is
flat with the dollar at fresh highs which is encouraging selling. Plains
planting progress should move forward with warm and drier conditions likely to
challenge stands early while Australia struggles. Little change in the Black
Sea situation is seen with bushels still moving out and planting just underway
as well. On the report, trade is looking for stocks at 1.772 billion bushels.
On the KC December Chart, the 20-day at $7.28 is resistance with support, the
lower Bollinger Band is at $7.05, with the fresh low at $6.97 just below that.
David Fiala can be reached at email@example.com
Follow him on X, formerly Twitter, @davidfiala
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