DTN Grain Midday: Weak Morning Trade

On-farm grain bin system. ©Debra L Ferguson

Row crops are holding near the daily lows at midday, wheat is mixed.

CORN

Corn trade is 3 to 4 cents lower overnight with trade pulling back from the fresh highs scored to open the week with spillover pressure from soybeans. More open weather should return this week, but will take a bit to get everyone back up to speed. Ethanol margins remain tight with ethanol futures still struggling to extend gains, with futures falling back to $1.28 this morning.

Corn basis is expected to stay sideways with wet weather limiting weakness in some areas. The weekly crop progress showed unchanged conditions at 68% good to excellent, and 12% poor to very poor, 96% mature, 5% ahead of average, with 39% harvested, 4% ahead of average.

On the December chart support is at the 100-day at 3.73, and the 200-day next resistance at $3.88.

SOYBEANS

Soybean trade is 7 to 10 cents lower with trade pulling back from the fresh highs scored yesterday with harvest starting to resume. Meal is $3.50 to $4.50 lower and oil 10 to 20 points lower. Soybean basis will likely see pressure again later in the week as farmers get back into the fields.

Crop losses from the weather will likely take a while for trade to sort out, which will likely trigger volatile trade, especially with overbought conditions. Crush margins remain strong with September crush another record at 160 million bushels. South America should continue to see fairly normal early season progress in the near term with good moisture with the biggest concerns in Argentina.

The weekly crop progress showed conditions down 2 percentage points at 66% good to excellent, and 12% poor to very poor, 95% dropping leaves, 3% ahead of average, and harvest at 38%, 15% behind average.

On the November chart support is the 10-day at $8.67, with resistance the 100-day at $8.89 that we tested on Monday but couldn’t hold.

WHEAT

Wheat trade is narrowly mixed with Chicago trade leading at midday with gains from the last two days holding for the most part. The U.S. dollar has faded back below 95 with some light selling to start the week.

World spring wheat harvest is nearing completion, while winter wheat planting is ongoing with better conditions in North America than Europe with plenty of moisture on the plains. Australia remains in the recent weather pattern with some relief in the drier areas.

The weekly crop progress showed planting at 65%, 2 percentage points behind average, and emergence at 44%, 3 percentage points ahead of average. MATIF milling wheat is flat to lower this a.m.

On the December Kansas City chart, we are just above the 10-day and 20-day at 5.21 with the lower Bollinger Band support at 5.09, and resistance the upper Bollinger Band at $5.31.

General Comments

The U.S. stock market indices are firmer with the Dow futures up 370. The interest rate products are mostly higher. The dollar index is 8 lower. Energies are mixed with crude down 0.15. Livestock trade is mixed with hogs leading. Precious metals are mixed with gold up 1.90.

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