DTN Grain Close: Soybeans Earn Modest Gain Despite Rain

November soybeans closed up 4 3/4 cents Wednesday, a surprising gain in the face of widespread beneficial rains on Wednesday’s weather map and in the seven-day forecast. December corn ended up 1 1/2 cents in quiet trade, while the three wheats were narrowly mixed.

 

Soybeans lead mixed trade at midday.

CORN

Corn is 1 to 2 cents lower at midday with trade chopping around the lower end of the range with another day of crop touring, and demand speculation after Poet announced the idling of one plant, and reduced run rates at others. Weather should continue to remain a short-term non-issue as the crop tour moves through Iowa and Illinois today with rains and cooler temps short term.

Ethanol margins remain poor with the weekly report showing production down 22,000 barrels per day, and stocks down 561,000 barrels, helping futures to edge a couple of cents higher. Basis remains mixed overall with harvest getting closer.

On the September nearby chart support is likely the $3.59 low with the lower Bollinger Band at $3.47 below that with resistance the 10-day at $3.75, reflecting the break.

SOYBEANS

Soybean trade is 1 to 3 cents higher with trade again trying to find some buying support at the lower end of the range. Meal is narrowly mixed and oil is 30 to 40 points higher. Crush margins remain positive overall, with oil staying towards the upper end of the range.

Basis remains flat overall. The Brazilian ral is trying to firm off the lows again, with local prices an effective premium to much of the U.S. The weather looks to be a short-term non-issue for soybeans as well coming forward. The trade situation remains little changed as well.

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 1 to 3 cents lower with range bound trade continuing in quiet midday action. The Kansas City/Chicago spread is at 74 after a high of 90 cents last week. The corn/HRW spread is narrower, back to 23 cents.

Kansas City wheat is now back to competitive on the world market trading as well as into feed rations. Spring wheat harvest should expand with winter wheat just about wrapped up, with Europe progressing as well. The dollar remains near the upper end of the range, limiting upside potential.

The September Kansas City chart support is the new low at 3.80 3/4 with the first resistance the 10-day at $3.94.

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