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DTN Midday Grain Comments 09/28 10:51
Corn Higher; Beans and Wheat Lower
Corn trade is 2 cents to 3 cents higher; beans are 4 cents to 5 cents lower
and wheat trade is 4 cents lower to 2 cents higher.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
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:
Corn trade is 2 cents to 3 cents higher with trade working to hold above
nearby support with negative spillover from soybeans and wheat easing at midday
along with continued harvest pressure in the background. Ethanol margins will
likely stay sideways short-term with driving demand stabilizing. The daily wire
was quiet yesterday with expectations for fresh sales limited and weekly sales
edging slightly higher at 841,800 metric tons. Basis should resume a drift
lower for early harvest with a 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 need another
close above, with the recent low at $4.67 3/4 as support.
SOYBEANS:
Soybean trade is 4 cents to 5 cents lower at midday with trade fading back
below $13 nearby with harvest pressure and shipping concerns finding selling
with meal finding support after broad weakness early on. Meal is $1.50 to $2.50
higher and oil is 120 to 130 points higher. The daily wire has been quieter in
recent days with weekly sales mixed at 672,200 metric tons --16,900 of old
meal, 375,500 of new, and 4,700 of oil. Basis will fade with harvest picking up
again with the river system still declining inflows. 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 at the 20-day at $13.35.
WHEAT:
Wheat trade is 4 cents lower to 2 cents higher with trade scoring fresh lows
again with the strong dollar and spread action keeping trade defensive with
Chicago action trying to lead a reversal. Matif wheat was slightly lower with
the dollar just below 10-month highs. Plains planting progress should move
forward with warm and drier conditions likely to challenge stands early with
the second week possibly wetter while Australia struggles. Little change in the
Black Sea situation is seen with bushels still moving out and planting just
underway.
On the report, trade is looking for stocks at 1.772 billion bushels. Weekly
export sales were improved to 544,500 metric tons. On the KC December Chart,
the 20-day at $7.25 is resistant with support from the lower Bollinger Band at
$6.93 and the fresh low just below that at $6.81.
David Fiala can be reached at dfiala@futuresone.com
Follow him on X, formerly Twitter, @davidfiala
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