DTN Midday Grain Comments 09/23 11:00
All Grains Lower at Midday
Corn is 1 to 2 cents lower, soybeans are 2 to 3 cents lower, and wheat is 2
to 5 cents lower.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is lower with the Dow down 55 points. The dollar index
is 20 points higher. Interest rate products are mixed. Energies are firmer with
crude up $0.40. Livestock trade is mostly higher. Precious metals are weaker
with gold down $35.
Corn trade is 1 to 2 cents lower at midday with harvest pressure pushing
action slightly lower at midday. The daily export wire was quiet for corn
today. The weekly ethanol report showed production down 20,000 barrels per day,
with stocks 199,000 barrels higher. Basis has started to slide towards harvest
levels in many areas with open weather allowing combines to roll. On the
December contract, trade has support at the $3.64 20-day moving average, with
the recent high at $3.78 as resistance.
Soybean trade is 2 to 3 cents lower at midday with volatile two-side trade
continuing, with export sales storming along with another 132,000 metric tons
to China, and 126,000 to unknown announced yesterday with more expected today,
while the spreads try to stabilize after being weaker the last couple of days.
Meal is $6.50 to $7.50 higher and oil is 85 to 95 points lower. The ral
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 with meal driving
the product complex. The November chart has resistance at the upper Bollinger
Band at $10.46, which is also the fresh high with support the 20-day at $9.84.
Wheat trade is 1 to 6 cents lower at midday with choppy trade continuing in
the upper end of the range. The dollar remains steady vs. the ruble with little
change in world export competitiveness. Kansas City is at a 64-cent discount to
Chicago with spreads narrowing again after the Friday reversal, while
Minneapolis is back to a 17 cent discount with narrower action to start. Wheat
drilling progress should expand across the plains short term with OK moisture
for most for now but follow up rain lacking. Kansas City December chart
resistance is the fresh high at $5.09, and support is the 20-day at $4.78.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered adviser.
He can be reached at firstname.lastname@example.org
Follow him on Twitter @davidfiala
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