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DTN Midday Grain Comments 09/15 10:44
Grain Futures Moving Up at Midday
Corn is 7 to 8 cents higher, soybeans are 4 to 5 cents higher and wheat is 8
to 9 cents higher.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
The U.S. stock market is mixed with the Dow up 85 points. The U.S. Dollar
Index is 0.12 lower. Interest rate products are weaker. Energies are firmer
with crude up $2.20. Livestock trade is mixed with hogs leading. Precious
metals are mixed with gold down $13.40.
CORN:
Corn trade is 7 to 8 cents higher at midday Wednesday with trade pushing
toward resistance levels and firmer spread action as we look to build on
Tuesday's gains. The weekly ethanol report showed production up 14,000 barrels
per day, stocks declined another 380,000 barrels while natural gas values limit
margin gains with unleaded staying near the upper end of the range. South
America will continue with early full season corn planting and little weather
concerns there so far. Corn basis will likely continue to drift lower into
harvest, which should push to above average pace with the higher temps near
term. On the December contract, we have support at the fresh low at $4.97 while
resistance is the 20-day at $5.33.
SOYBEANS:
Soybeans are 4 to 5 cents higher at midday with trade remaining range bound
overall and firmer spread action as trade will need to challenge the
$13.00-area to build momentum with five cargos of soybeans being canceled on
the daily wire. Meal is $1.50 to $2.50 lower and oil is 1.05 cents to 1.15
cents higher with oil again leading the product complex. Warmer weather should
continue to push the crop towards maturity. Basis levels have been flat to
weaker in recent days. Trade will watch South American weather, but widespread
planting won't come until the end of the month, depending on weather with some
recent showers On the November soybean chart, resistance at the 20-day at
$12.99 with support at the recent low at $12.65.
WHEAT:
Wheat trade is 8 to 9 cents higher at midday with winter wheats leading as
they push back above $7.00 nearby. The dollar is fading back towards 92 points
on the index as the rally failed again. KC is at a 3-cent premium to Chicago
with early week strength holding this week, with Minneapolis at a 186-cent
premium on the December in weaker action. Weather in the Plains looks dry short
term as planting gets going with little fresh news on Southern Hemisphere
weather so far, while StatsCanada edged production lower. KC December on the
chart has resistance at the 20-day at $7.11, which we are testing at midday
with the fresh low at $6.76 1/2 as support.
David Fiala can be reached at dfiala@futuresone.com
Follow him on Twitter @davidfiala
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