DTN Midday Grain Comments 10/21 11:34
Corn, Beans Trending Higher at Midday
Row crop trade is higher at midday, wheat flat to lower with sideways
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are mostly lower with the DOW 90 points lower.
The interest rate products are mostly lower. The dollar index is 40 points
higher. Energies are mixed with crude down .20. Livestock trade is firm with
cattle sharply higher. Precious metals are lower with gold down $.60.
Corn trade is 1 to 2 cents higher at midday with light end user buying;
overall we have a very slow session so far with only a 3 cent trading range.
December futures held at support, the $3.50 level, after the down day yesterday
which market longs are happy about. Ethanol margins should remain stable and
positive going into the weekend, with basis pressure from harvest adding a
boost in some areas, along with ethanol futures edging higher this morning. The
weather forecast may bring a slower pace in the near term if some of the rains
materialize. On the December contract chart support is at $3.50 with the 10-day
at $3.49 below there. Resistance is at the $3.59 1/4 a 3-month high printed
yesterday than the $3.63 100-day followed by the 200-day at $3.73. Expect
sizeable sell stops below the $3.49-50 area if we see any pressure this
Soybean trade is 3 to 8 cents higher at midday with trade trying to
consolidate above the $9.78 area of the 200-day moving average going into the
weekend. Meal is $2 to $3 higher and oil is 5 to 15 points higher. Harvest
pressure should continue into the weekend but remaining acres could be slowed a
bit after that. Basis will remain soft into the weekend, but next week the
pressure should start to fade with harvest in the home stretch. Brazilian
weather has improved as planting progresses. On the November soybean chart
support is the $9.70 50-day, then the $9.59 20-day. Resistance is at the $9.89
3/4 high reached earlier then $10, then the 100-day up at $10.25.
Wheat trade is 1 to 4 cents lower with firmer row crops trade and the
stronger dollar at the end of the week, along with a slightly better chart
picture. The dollar made five-month highs today, with Russia still the cheapest
origin for the key importing nations, although the U.S. did find some business
on the daily wire yesterday. Weather concerns may build with the reduced
acreage in the U.S., and dry weather at emergence for a chunk of the western
belt but the extended forecast offers some hope for rain as above-normal
temperatures continue. On the Kansas City December chart, support is the 50-day
at $4.19 then the 20-day at $4.13. Resistance is at the $4.29 upper Bollinger
Band then the August $4.49 3/4 high.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered Advisor.
He can be reached at email@example.com
Follow Fiala on Twitter @davidfiala
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