DTN Midday Grain Comments 09/23 10:57
Grain Futures Edge Higher Midday Thursday
Corn is 1 to 2 cents higher, soybeans are flat to 1 cent higher and wheat is
10 to 12 cents higher.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is firmer with the Dow up 530 points. The U.S. Dollar
Index is 0.40 lower. Interest rate products are lower. Energies are firmer with
crude up $1.10. Livestock trade is higher. Precious metals are weaker with gold
Corn trade is 1 to 2 cents higher with action moving sideways in quiet
midday Thursday action, moving off the early lows, keeping the recent range
intact with fresh news remaining limited. Ethanol margins will tighten a bit
with natural gas prices firming again while driving demand moves sideways short
term. South America will continue with early full-season corn planting and
little weather concerns there so far. Corn basis will continue to fade to
harvest continuing to push forward at a good clip. Weekly export sales remained
soft at 373,000 metric tons with 138,043 metric tons to Guatemala on the daily
wire. On the December contract, we have support at the fresh low at $4.97 while
resistance is the 20-day at $5.26, which we are just above.
Soybeans are flat to 1 cent higher at midday with trade working back towards
resistance in quiet action after the biofuel excitement Wednesday, along with
calmer outside markets. Meal is flat to $1.00 lower and oil is 0.30 cent to
0.40 cent higher. Harvest should continue to expand with weather continuing to
push maturity along. Basis levels have been flat to weaker in recent days.
South American planting will get more attention into the end of the month as
well, as action scales up. Weekly export sales were a little soft at 902,900
metric tons of current crop year, 10,000 for next year, with meal at 45,000 of
old, 216,400 of new, and 4,300 of oil. On the November soybean chart,
resistance at the 20-day at $12.88, which we are just below with support at the
recent low at $12.57 1/2.
Wheat trade is 12 to 13 cents higher at midday with support from the weaker
dollar and firmer world values boosting action. The dollar is back to 93 points
on the index. KC is even with Chicago with flat action, with Minneapolis at a
198-cent premium in flat action as well. Weather in the Plains looks dry short
term as planting gets going with little fresh news on Southern Hemisphere
weather so far. Weekly export sales softened at bit at 355,900 metric tons. KC
December on the chart has resistance at the 20-day at $7.06, which we are just
above at midday, with the lower Bollinger Band at $6.80.
David Fiala can be reached at email@example.com
Follow him on Twitter @davidfiala
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