DTN Midday Grain Comments 09/24 11:00
Grain Futures Mixed at Midday Friday
Corn is 2 to 3 cents lower, soybeans are narrowly mixed and wheat is 1 to 6
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is weaker with the Dow down 40 points. The U.S. Dollar
Index is 0.35 higher. Interest rate products are lower. Energies are firmer
with crude up $0.30. Livestock trade is weaker. Precious metals are mixed with
gold up $3.00.
Corn trade is 2 to 3 cents lower in quiet midday action Friday as harvest
will continue to expand into the weekend as trade remains near short-term
resistance levels. Ethanol margins will tighten a bit with natural gas prices
firming again while driving demand moves sideways short term, limiting blender
upside. South America will continue with early full-season corn planting with
little weather concerns there so far. Corn basis will continue to fade to
harvest continuing to push forward at a good clip. On the December contract, we
have support at the fresh low at $4.97 while resistance is the 20-day at $5.25,
which we are trying to hold above into the weekend.
Soybeans are narrowly mixed at midday with range-bound action ongoing as
well, with harvest pressure likely into the weekend. Meal is $1.00 to $2.00
lower and oil is 0.70 cent to 0.80 cent higher. Harvest should continue to
expand with weather continuing to push maturity along with a broad yield trend
emerging soon. Basis levels have been flat to weaker in recent days. South
American planting will get more attention into the end of the month. On the
November soybean chart, resistance is at the 20-day at $12.86, which we are
just below with support at the recent low at $12.57 1/2.
Wheat trade is 1 to 6 cents higher at midday with trade continuing to test
the upper end of the range. The dollar is back near the highs in midday action
as well. KC is 2 cents below Chicago in weaker action, with Minneapolis at a
192-cent premium in weaker action too. Weather in the Plains looks a little
wetter short term as planting gets going with little fresh news on Southern
Hemisphere weather so far. KC December on the chart has support at the 20-day
at $7.07, with the upper Bollinger Band at $7.32 as resistance.
David Fiala can be reached at email@example.com
Follow him on Twitter @davidfiala
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