DTN Midday Grain Comments 10/15 10:59
Grain Futures in the Green Midday Friday
Corn is 8 to 9 cents higher, soybeans are 9 to 11 cents higher and wheat is
11 to 16 cents higher.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is firmer with the Dow up 280 points. The U.S. Dollar
Index is 0.03 lower. Interest rate products are weaker. Energies are mixed with
crude up $0.90. Livestock trade is mixed with feeder cattle lagging. Precious
metals are mixed with gold down $25.00.
Corn trade is 9 to 10 cents higher at midday Friday with trade pressing back
toward nearby resistance with firmer spread action as we head into another
harvest weekend. Ethanol margins have improved with natural gas flattening out
and tight stocks boosting margins. South America will continue with early
full-season corn planting and little weather concerns there so far. Corn basis
should remain flat near term with harvest moving toward the back half. Weekly
export sales improved with 1.04 million metric tons sold of old crop and 3,600
mt for next year. On the December contract, we have resistance at the 20-day at
$5.29 with the September low at $4.97 as support.
Soybeans are 9 to 10 cents higher at midday with trade consolidating back
above $12.00 nearby with flat to firmer spread action. Meal is $1.50 to $2.50
higher and oil is 0.70 cent to 0.80 cent higher. Basis levels have been flat to
weaker in recent days with crush margins starting to improve and meal finally
showing some better action. South American planting will get more attention
into the end of the month as well, as action scales up with a mixed short-term
forecast remaining in place with Brazil wetter than Argentina short term,
keeping concerns limited. Weekly export sales improved at 1.15 million metric
tons of beans; 365,400 metric tons of old crop meal and 700 mt of new, and
19,800 mt of oil. On the November soybean chart, resistance at the 20-day at
$12.50 with support the recent low at $11.84 3/4.
Wheat trade is 11 to 17 cents higher at midday with Minneapolis action
leading again as trade bounces back from the support levels tested midweek. The
dollar is just above 94 points on the index, settling back into range-bound
action. KC is at an 8-cent premium to Chicago with firmer action, with
Minneapolis at a 237-cent premium in flat action. Weather in the Plains has
been a little wetter as planting pushes forward with open weather again short
term. Weekly export sales improved at 567,600 metric tons. KC December on the
chart has support at the 20-day at $7.28, then resistance at the fresh high of
$7.64 then the contract high at $7.69 from this summer.
David Fiala can be reached at firstname.lastname@example.org
Follow him on Twitter @davidfiala
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