DTN Midday Grain Comments 10/28 10:48
Corn Up, Soybeans Down Midday Thursday
Corn trade is 4 to 5 cents higher, beans are 2 to 3 cents lower and wheat is
2 to 10 cents higher.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is firmer with the Dow up 180 points. The U.S. Dollar
Index is 0.50 lower. Interest rate products are mostly lower. Energies are
weaker with crude down $0.85. Livestock trade is mixed with hogs leading.
Precious metals are firmer with gold $5.50.
Corn trade is 4 to 5 cents lower at midday Thursday with trade consolidating
midweek gains, as we fade from another early dime higher surge early in the day
session with trade continuing to probe resistance. Ethanol margins should
support production near term as we continue to try to catchup stocks from low
levels. Basis should remain steady to firmer short term as harvest pressure
eases. Weekly export sales were OK at 890,400 metric tons. On the December
contract, we have chart support at the 20-day at $5.32, and resistance the
retracement levels at $5.68 that we tested Thursday morning after we moved past
the upper Bollinger band at $5.55 Wednesday.
Soybean trade is 2 to 3 cents lower as trade is struggling to keep pace with
the gains again as oil drags the product complex lower. Meal is flat to $1.00
lower and oil is 0.35 cent to 0.45 cent lower. Brazil looks to have good
short-term conditions with Argentina more mixed nearby but overall major issues
limited in early planting with La Nina concerns in the background. Weekly
export sales softened at 1.18 million metric tons of beans, 161,500 mt of meal
and 14,600 mt of oil. On the November soybean chart, trade is just above the
20-day at $12.30 with the recent high at $12.57 1/2 the next round up as the
recent high, with further support at the lower Bollinger Band at $11.98.
Wheat trade is 2 to 10 cents lower with Minneapolis leading a midday as
trade holds the upper end of the range but fading back from highs in flat
intramonth spread action. The dollar is fading back to the lower end of the
recent range. Spring wheat remains at a 2.65-cent premium to Chicago, with KC
at 18-cent premium in mixed action after fresh highs were scored Wednesday.
Weather in the Plains had some moisture to boost early stands but remains
mixed. Weekly export sales were soft at 269,300 metric tons. KC December chart
support is at the 20-day at $7.52 with resistance at the upper Bollinger Band
at $7.87 which we tested Wednesday with the fresh high at $7.97 above that.
David Fiala can be reached at firstname.lastname@example.org
Follow him on Twitter @davidfiala
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