DTN Midday Grain Comments 09/18 15:09
Grains Trending Higher at Midday
Corn is flat to 1 cent higher, soybeans are 10 to 12 cents higher, and wheat
is 5 to 13 cents higher.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market weaker with the Dow down 55 points. The dollar index
is 15 points lower. Interest rate products are lower. Energies are firmer with
crude up $0.40. Livestock trade is mixed with cattle leading. Precious metals
are firmer with gold up $12.
Corn trade is flat to 1 cent higher at midday with trade following soybeans
higher again with fresh highs being scored again overnight with spreads softer
at midday, and 210,000 metric tons of corn sold to China. Ethanol margins
continue to see pressure with the firm corn trade with unleaded bouncing
slightly. Basis has remained fairly flat with steady action expected to start
the week. On the December contract, trade has support at the $3.60 20-day
moving average, with the recent high at $3.79 as resistance.
Soybean trade is 10 to 12 cents higher at midday with trade scoring new
highs with more export sales showing up of 132,000 metric tons of beans to
China, and 100,000 mt of meal to unknown. Meal is $4.50 to $5.50 higher and oil
is 10 to 20 points higher. The real remains in the lower end of the range ahead
of South American planting with farmers waiting for seasonal rains while
Argentine farmer selling remains slow. Export offers continue to get tighter in
availability as well. The November chart has resistance at the upper Bollinger
band at $10.44 which is also where the overnight high was with support the
20-day at $9.67.
Wheat trade is 5 to 13 cents higher at midday with the row crops pulling
wheat along while European dryness will remain supportive short term. The
dollar remains steady vs. the ruble with little change in world export
competitiveness. Kansas City is at a 66-cent discount to Chicago with spreads
near the recent lows, while Minneapolis is back to a 16-cent discount with
wider action to start. Wheat drilling progress should expand across the plains
short term with OK moisture for most. Weekly export sales were softer at
335,700 metric tons. Kansas City December chart resistance is the upper
Bollinger Band at $4.93 with $5.00 the next round up which we are testing at
midday, and support is the 20-day at $4.72.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered adviser.
He can be reached at email@example.com
Follow him on Twitter @davidfiala
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