DTN Grain Midday: All Grains Lower

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

Corn is 4 to 5 cents lower, soybeans are 6 to 8 cents lower, and wheat is 1 to 6 cents lower.

The U.S. stock market is weaker with the Dow down 200 points. The dollar index is 36 points lower. Interest rate products are firmer. Energies are weaker with crude $1.70 lower. Livestock trade is mixed with cattle leading. Precious metals are mixed with gold up $16.

CORN

Corn trade is 4 to 5 cents lower at midday with broad weakness at midday keeping trade at the lower end of the recent range ahead of the stocks report tomorrow. The daily export wire will be watched to see if sales maintain the recent pace with nothing seen today. Ethanol margins are steady with unleaded holding near the upper end of the recent range. Basis should see pressure this week with more bushels coming in to town.

Weekly crop progress showed 75% mature vs. 65% on average, and 15% harvested vs. 16% on average, with 61% good to excellent and 14% poor to very poor, unchanged. The report tomorrow is expected to show corn stocks at 2.25 billion bushels. On the December contract, trade has support at the $3.65 20-day moving average which are below at midday then the $3.54 lower Bollinger band, with the recent high at $3.78 as resistance.

SOYBEANS

Soybean trade is 6 to 8 cents lower at midday with trade seeing further harvest pressure and long liquidation ongoing, with export announcements of 100,000 to Mexico. Meal is $3.50 to $4.50 lower and oil is 65 to 75 lower. The ral remains in the lower end of the range ahead of South American planting with farmers waiting for seasonal rains while Argentine farmer selling remains slow, with Brazil heavily sold ahead. Export offers continue to get tighter in availability as well with meal driving the product complex while strain on domestic logistics will increase as shipping pace needs move along at a rapid pace.

Weekly crop progress showed 74% dropping leaves vs. 69% on average, with 20% harvested vs. 15% average with 64% good to excellent and 10% poor to very poor. The stocks report is expected to show 576 million bushels. The November chart has resistance at the upper Bollinger Band at $10.46 which is also the fresh high with support the 20-day at $9.93 which we are just below this a.m., with the lower Bollinger Band at $9.48 below that.

WHEAT

Wheat trade 2 to 6 cents lower at midday with sideway action ongoing with trade back into support levels with early gains fading and Chicago trade leading. Export competitiveness remains about the same with the focus remaining on Europe dryness along with U.S. plains progress. Kansas City is at a 71-cent discount to Chicago with spreads wider and back to the recent highs, while Minneapolis is back to a 23 cent discount with weaker action. Wheat drilling progress should expand across the plains short term with ok moisture for most for now but follow up rain lacking overall.

Weekly crop progress showed planting progress at 35% vs 33% on average, with 10% emerged vs. 8% on average. The stock report is expected to show 2.242 billion bushels with all wheat production at 1.841 billion bushels. Kansas City December chart resistance is the fresh high at $5.09, and support is the 20-day at $4.79, which we are just above with the lower Bollinger Band the next level at $4.61.

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