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DTN Grain Midday: Quiet, Mixed Trade

Ernst Undesser
By David Fiala DTN Contributing Analyst October 18, 2017

DTN Grain Midday: Quiet, Mixed Trade

©Debra L Ferguson Stock Photography

Quiet trade at midday with row crops mixed.

CORN

Corn trade is 1 to 2 cents lower at midday in quiet trade as the market continues to work around the $3.50 area with trade unable to hold positive post-report action as harvest expands. Ethanol margins are stable with the weekly report showing expansion of 52,000 barrels per day, and stocks down 43,000 barrels with ethanol futures edging slightly lower with gasoline demand backing off.

Basis should see harvest pressure, while carry remains at wide levels. Weather looks to remain open and better this week for drying corn. Corn moisture has been one of the biggest near term concerns as it has stayed stubbornly high in some areas.

On the December chart support is at the $3.42 1/2 low with resistance at the $3.56 50-day moving average.

SOYBEANS

Soybean trade is a penny better in quiet midday trade with the market marking time as harvest expands. Meal is near $1 higher and bean oil is 10 points lower. South American weather forecasts continue to show an uptick in moisture for northern Brazil in the extended forecast with the wetter areas drying out.

Trade will be watching to see if activity continues to show up on the daily export reporting system with the rise in prices with nothing announced in the last two days.

On the November chart, trade is above all the major moving averages, with the 200-day at $9.75 support, with resistance the recent high at $10.03.

WHEAT

Wheat trade is 2 to 5 cents lower at midday with trade staying in the lower end of the recent range with selling building during the day session. The dollar is firmer this morning as it heads towards the recent highs continuing the pattern of early day strength this week.

U.S. exports have been slowed lately as Black Sea origin continues to dominate. Australia will see more focus coming forward as well as the growing season progresses with some flood damage concerns in South America.

On the December Kansas City support is the lows at $4.20 after the 10-day at $4.32 failed to hold which we are testing this morning with resistance at the 20-day at $4.40.

General Comments

The U.S. stock market is higher this morning with the Dow up 130 points. The interest rate products are lower. The dollar index is 8 higher. Energies are lower with crude down $0.15. Livestock trade is mixed. Precious metals are lower with gold down $5.00.

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Ernst Undesser
By David Fiala DTN Contributing Analyst October 18, 2017