DTN Grain Midday: Soybeans Up Double Digits

    Mature soybean pods ready for harvest. ©Debra L Ferguson

    Corn trade is firm at midday Wednesday, beans are 15 cents higher and wheat is 6 to 15 cents higher.

    CORN:

    Corn trade was mixed overnight and is steadily firmer Wednesday morning with trade up a nickel at midday. Harvest is moving along with yield reports staying fairly steady, providing the market with limited fresh fundamental news. The chart momentum since a week ago has been in bounce-mode, with a sell-the-rumor, buy-the-fact mindset surrounding the action around the WASDE report, which was bearish versus expectations.

    So, the chart momentum and outside market support appear to be behind the slow but firmer midday action. On the December contract, we have chart support at the 200-day moving average at $5.20 with the $5.06 3/4 low last Wednesday now a major support area. Chart resistance is right around the $5.35 area, which is the daily high and the 50-day moving average, with larger upside resistance at the upper Bollinger Band at $5.46.

    SOYBEANS:

    Soybean trade is 15 cents higher at midday with the upward momentum seeming to have slowed at this juncture in the day. Meal is up $4 and soybean oil is up 2.00 cents. The strong bean oil trade is supporting beans along with chart buying. The market is flirting above the 20-day moving average at $12.44 on the November contract.

    If we can hold our midday gains into Wednesday afternoon, some short covering and fresh chart buying could show up. The daily high is 64 cents higher than the low we printed a week ago, so this is a significant bounce with upside momentum there on the chart. Without some fresh bearish fundamental news, the market appears to have chart buyers in control.

    On the November soybean chart, support is at the $12.22 10-day moving average and then the recent low of $11.84 3/4 with resistance at the 20-day currently at $12.44 then the 50-day at $12.81.

    WHEAT:

    Wheat trade is 6 to 15 cents higher at midday with upward momentum lead by Minneapolis, and there is spillover support from corn and beans. The drought in the spring wheat areas during and before the growing season remains a significant story echoed by our Minneapolis contract strength.

    With the move to new highs Wednesday, we are over $1 above the September low and a good chance we will see a $10 in front of the nearby contract before the day is over. KC December chart support is at the 20-day at $7.35 with resistance at the 10/4 high of $7.64. At midday Wednesday, we are at a new high for the current move, therefore, if we can hold the gains, some short covering or fresh chart buying could show up near the close.

    MARKET SUMMARY:

    The U.S. stock market is firmer with the Dow up 150 points. The U.S. Dollar Index is 0.09 lower. Interest rate products are mixed. Energies are mixed. Livestock trade is mixed. Precious metals are higher with gold up $14.

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