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DTN Midday Grain Comments 09/06 10:51
Corn, Soybean, Wheat Futures All Lower at Midday
Corn futures are 1 to 2 cents lower at midday Friday; soybean futures are 13
to 15 cents lower; wheat futures are 3 to 8 cents lower.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
Corn futures are 1 to 2 cents lower at midday Friday; soybean futures are 13
to 15 cents lower; wheat futures are 3 to 8 cents lower. The U.S. stock market
is weaker at midday with the S&P 77 points lower. The U.S. Dollar Index is 10
points lower. The interest rate products are firmer. Energy trade has crude
1.05 lower and natural gas unchanged. Livestock trade is weaker. Precious
metals are mixed with gold up 2.00.
CORN:
Corn futures are 1 to 2 cents lower at midday with trade fading from a fresh
high with flat spread action as negative outside markets help drag ag contracts
lower from early strength headed towards the weekend. Ethanol margins are
seeing pressure from fresh lows in unleaded Friday morning, narrowing blender
margins. Weather looks to mostly keep maturity moving forward with warmer
weather returning next week to expand harvest. Basis action will likely
continue to fade into midmonth with nearby demand absorbing some of the early
bushels and ready supplies should remain ample. Weekly export sales were solid
as the marketing year wrapped up with -173,100 metric tons (mt) for old and
1.82 million metric tons (mmt) on new crop. On the December chart, the 20-day
moving average at $3.98 is now support with the next round up at the Upper
Bollinger Band at $4.14, which we tested and faded from.
SOYBEANS:
Soybean futures are 13 to 15 cents lower at midday with trade fading from a
fresh high on long profit-taking ahead of harvest, and mixed product action
along with the negative spillover from outside markets. Meal is 1.00 to 2.00
higher and oil is 135 to 145 points lower. Warmer weather should continue to
push maturity in much of the belt into midmonth after the weekend cool down
with early harvest to start in earnest soon. Weekly export sales were solid
with -228,000 mt of old crop and 1.66 mmt of new with meal at 40,900 mt of old
and 434,700 mt of new, 1,900 of old oil, and 3,300 of new. Basis should
continue to see pressure, but recent export sales should add a bit of support.
The November chart support is at the 20-day moving average at $9.86, with the
Upper Bollinger Band at $10.27 as the next level of resistance, which we tested
and faded from Friday morning.
WHEAT:
Wheat futures are 3 to 8 cents lower with trade fading back off the upper
end of the range with steady to firm spread action as we look to consolidate
the upper end of the range. Northern Hemisphere harvest should be close to
effectively wrapped up soon. Early Plains wheat drilling is under way with
warmer drier conditions expected into midmonth. The dollar is fading a bit with
MATIF action holding the top of the recent range as well. Weekly export sales
were at the lower end of the recent range at 340,000 mt of old crop and -10,500
mt for new. On the KC December chart, support is the 20-day moving average at
$5.61, with the Upper Bollinger Band at $5.92 as the next level of resistance,
which we have pulled back from after testing overnight.
David Fiala can be reached at dfiala@futuresone.com
Follow him on social platform X @davidfiala
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