DTN Grain Midday: Grain Futures Mixed

Freshly harvest soybeans loaded in truck for transport to grain elevator. ©Debra L Ferguson

Grain Futures Mixed at Midday

Corn futures are steady to 1 cent higher, soybean futures are 2 to 3 cents higher, and wheat futures are 8 to 15 cents lower.

MARKET SUMMARY:

The U.S. stock market is firmer with the Dow up 260 points. The U.S. Dollar Index is 35 points higher. Interest rate products are weaker. Energies are firmer with crude up .80. Livestock trade is mostly lower. Precious metals are higher with gold up $4.

CORN:

Corn futures are steady to 1 cent higher at midday with light short-covering with oversold conditions to start the week and little other fresh news. Ethanol margins are a little narrower with the flatness in energies and the end of summer driving season looming. Basis has remained fairly flat in recent days, with isolated pockets of pre-harvest strength.

Weekly crop progress is expected to show steady to slightly better conditions, and development slightly ahead of the 5-year average. Weekly export inspections were a bit softer at 716,726 metric tons (mt). On the September contract, trade continues to have resistance at the 20-day moving average at $3.28, with chart support at the lower Bollinger band at $3.13.

SOYBEANS:

Soybean futures are 2 to 3 cents higher at midday with trade working back towards the $9.00 area yet again with slightly weaker spreads and another 260,000 mt booked to unknown. Meal is $1.50 to $2.50 lower and oil is 40 to 50 higher. Demand will need to be the driver of rallies with weather threats limited into early podfill. The real remains at the upper point of the recent range vs. the dollar, which should keep new-crop interest robust, although we are losing ground to start the week.

Weekly crop progress should show steady to slightly better conditions with maturity ahead of the 5-year average. Weekly export inspections improved a bit to 551,543 mt. The September chart now has resistance at the 20-day moving average at $8.90 which we are just above, and support the lower Bollinger band at $8.74.

WHEAT:

Wheat futures are 8 to 15 cents lower with the alternating pattern continuing as pressure from the dollar bounce offsets talk of the smaller Continental Europe harvest. The ruble is holding vs. the dollar with the bounce this morning. KC is at an 89-cent discount to Chicago with spreads back to the top end of the range, while Minneapolis is back to a 17-cent discount with slight weakness in the inter-rmonth spreads.

Weekly crop progress should show harvest nearly complete for winter wheat with spring wheat getting underway with steady conditions. Export inspections remained steady at 500,110 mt. KC September chart support is the recent low at $4.23 3/4, with the 20-day back above the market as nearby resistance at $4.45, which is we are fading from overnight.

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