DTN Midday Grain Comments 09/17 11:43
All Grains Higher at Midday
Corn is 1 to 2 cents higher, soybeans are 10 to 11 cents higher, and wheat
is 4 to 8 cents higher.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market weaker with the Dow down 190 points. The dollar index
is 15 points lower. Interest rate products are higher. Energies are firmer with
crude up $0.70. Livestock trade is mixed. Precious metals are mixed with gold
Corn trade is 1 to 3 cents higher with trade following soybeans higher at
midday after early two sided trade along with 120,000 metric tons announced n
the export market. The export wire was quiet for corn yesterday, and spreads
are firmer. Ethanol margins continue to see pressure with the firm corn trade.
Basis has remained fairly flat with steady action expected to start the week.
Weekly export sales were good at 1.61 million metric tons. On the December
contract, trade has support at the $3.56 20-day moving average, with the recent
high at $3.74 as resistance.
Soybean trade is 10 to 12 cents higher at midday with trade scoring new
highs after bouncing off the selling after the news about China import quotes
remaining unchanged with sales of 264,000 metric tons to China, and 306,500
metric tons to unknown. Meal is $6.50 to $7.50 higher and oil is 10 to 20
points lower. The ral remains in the lower end of the range ahead of South
American planting with farmers waiting for seasonal rains. Export offers
continue to get tighter in availability as well. Weekly export sales remain
strong at 2.46 million metric tons, with net meal sales at 91,900 metric tons,
and 100 of oil, leaving product sales softer. The November chart has resistance
at the upper Bollinger Band at $10.29 with the spike high at 10.24 above that
with support the 20-day at $9.62.
Wheat trade is 5 to 8 cents higher with the row crops pulling wheat back
from early weakness while European dryness will remain supportive short term.
The dollar remains steady vs. the ruble with little change in world export
competitiveness. Kansas City is at a 66-cent discount to Chicago with spreads
getting back to the recent lows, while Minneapolis is back to a 10 cent
discount with narrower action to start. Wheat drilling progress should expand
across the Plains short term with OK moisture for most. Weekly export sales
were softer at 335,700 metric tons. Kansas City December chart resistance is
the upper Bollinger Band at $4.88 with $5.00 the next round up, and support is
the 20-day at $4.69.
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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