DTN Midday Grain Comments 10/23 11:05
Grains Mixed at Midday
Corn is flat to 1 cents higher, soybeans are 3 to 5 cents lower, and wheat
is 4 to 9 cents higher.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is weaker with the Dow down 65. The dollar index is 7
points lower. Interest rate products are mixed. Energies are flat with crude
down $0.15. Livestock trade is mixed. Precious metals are weaker with gold down
Corn trade is flat to 1 cent higher at midday with steady spread action up
front as we stay near the fresh highs. The export wire showed 100,000 metric
tons sold to unknown. Ethanol margins remain under pressure with corn values
elevated as ethanol retains its premium to unleaded. Basis will likely remain
solid with rains slowing harvest along with the upfront demand. On the
December contract resistance is the fresh high at $4.19 3/4 with support the
20-day at $3.92.
Soybean trade is 3 to 5 cents lower at midday with light two-sided action so
far with trade pulling back from the fresh highs scored earlier in the week
with the export market quiet. Meal is $1.50 to $2.50 lower and oil is flat to
10 points lower. Brazil should continue to make planting progress with the
better rains short term, while Argentina continues to remain slow in moving
soybeans to crushers. Basis remains strong as we continue to work to max out
our logistics capacity to ship the needed export bushels. The export wire was
quiet today. The November chart has resistance at the fresh high at 10.85 1/4
with support the 20-day at 10.43.
Wheat trade is 4 to 8 cents higher at midday with winter wheat trade leading
as we try to find buying again after lower closes the last two days with
firmer spread trade overall. The ruble action continues to favor Russia a bit
in the export markets but their domestic prices are now elevated with growing
winter kill concerns, along with too much rain in Australia as harvest starts.
Middle East buyers are becoming more active with tenders as well. Kansas City
is at a 65-cent discount to Chicago with spreads backing off the recent highs,
while Minneapolis is back to 52 cent discount with very active spread action.
Rains look to be more wide spread for U.S. growing areas over the next seven-10
days. Kansas City December chart resistance is the fresh high at $5.79 1/2, and
support is the 20-day at $5.35.
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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