DTN Grain Close: Row Crops Slide Lower to Start Week

December corn closed down 6 1/4 cents and November soybeans were down 13 1/4 cents, pressured by the appearance of some beneficial rain in this week’s forecast. Other commodities were mixed to higher, helped by Monday’s rebound in U.S. stock prices.

 

Midday: Broadly weaker grain trade at midday.

CORN

Corn is 5 to 6 cents lower at midday with trade surrendering Friday’s bounce after rains across much of the belt, along with the start of the big crop tour. Weather should continue to remain a short-term non issue.

Ethanol margins remain poor with blenders seeing the most short-term benefits with ethanol futures drifting lower. Basis remains mixed overall with harvest getting closer. Weekly export inspections remain soft at 510,334 metric tons. Weekly crop progress is expected to show steady conditions, and lagging maturity.

On the September nearby chart support is likely the $3.59 low with the lower Bollinger Band at $3.54 below that with resistance the 10-day at $3.83, reflecting the break.

SOYBEANS

Soybean trade is 7 to 9 cents lower at midday with trade fading back to the lower end of the range after the weekend rains. Meal is 1.00 to 2.00 lower and oil is 35 to 45 points lower. Basis remains flat overall. The Brazilian ral is recovering off of fresh lows scored last week and the Argentina peso still at rock bottom prices.

The weather looks to be a short-term non-issue for soybeans as well coming forward. The trade situation remains little changed as well. The weekly export inspections improved at 1.13 million metric tons. Weekly crop progress will likely be steady conditions with maturity not catching up much.

September chart support is the lower Bollinger Band at $8.42, with the next round up the 10-day $8.65.

WHEAT

Wheat trade is 2 to 5 cents lower, with Chicago trying to gain again, and spring wheat harvest continuing along with spillover pressure from row crops. The Kansas City/Chicago spread is at 78 after a high of 90 cents last week. The corn/HRW spread is wider, back to 27 cents. Kansas City wheat is now back to competitive on the world market trading at a discount to the lowest offers in the most recent GASC tender.

Spring wheat harvest should expand with winter wheat just about wrapped up, with Europe continuing to move towards spring wheat harvest as well. Weekly export inspections were 488,905 metric tons. Weekly crop progress is expected to show winter wheat harvest effectively complete, with spring wheat past the 25% mark.

The September Kansas City chart support is the new low at 3.80 3/4 with the first resistance the 4.00 area.

The Latest


Send press releases to Ernst@Agfax.com.

View All Events


Send press releases to Ernst@Agfax.com.

View All Events