DTN Midday Grain Comments 09/27 10:44
Corn and Soybeans Seeing Double-Digit Gains
Corn is 12 to 13 cents higher, soybeans are 11 to 12 cents higher and wheat
is 2 to 4 cents higher.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is mixed with the Dow up 150 points. The U.S. Dollar
Index is 0.07 higher. Interest rate products are lower. Energies are firmer
with crude up $0.30. Livestock trade is weaker. Precious metals are mixed with
gold down $1.90.
Corn trade is 12 to 13 cents higher at midday Monday with expectations of
weaker yield trends and broader commodity support pushing trade back to the
upper end of the recent range. Ethanol margins will tighten a bit with natural
gas prices firming alongside corn, while driving demand moves sideways short
term, limiting blender upside even as unleaded pushes to fresh highs. South
America will continue with early full-season corn planting with little weather
concerns there so far. Corn basis will continue to fade with harvest continuing
to push forward at a good clip. Weekly export inspections showed a bit of
improvement at 517,539 metric tons, with weekly crop progress showing steady
conditions and slightly above-average maturity and harvest pace. On the
December contract, we have support at the 20-day at $5.24 with the upper
Bollinger Band at $5.42 next resistance.
Soybeans are 11 to 12 cents higher at midday with trade pushing through
nearby resistance levels to start the week and the broad commodity strength.
Meal is $4.00 to $5.00 higher and oil is flat to 0.20 cent higher. Harvest
should continue to expand with weather continuing to push maturity along with a
broad yield trend to emerge this week. Basis levels have been flat to weaker in
recent days. South American planting will get more attention into the end of
the month as well as action scaling up with a mixed short-term forecast. Weekly
export inspections improved at bit at 440,742 metric tons, with steady
conditions and above-average harvest pace on the weekly report. On the November
soybean chart, resistance is at the 20-day at $12.84, which we are just above,
with further support at the recent low at $12.57 1/2, and the upper Bollinger
Band above the market at $13.03.
Wheat trade is 2 to 4 cents higher with trade chopping along the upper end
of the range with spillover from outside markets offsetting the dollar
strength. The dollar is back near the highs as well, but effects have been
muted so far. KC is 2 cents below Chicago in firmer action, with Minneapolis at
a 195-cent premium in weaker action as well. Weather in the Plains looks wetter
short term as planting expands with little fresh news on Southern Hemisphere
weather so far. Weekly export inspections were disappointing at 286,087 metric
tons with weekly crop progress likely to show planting and emergence just ahead
of average. KC December on the chart has support at the 20-day at $7.07, with
the upper Bollinger Band at $7.32 as resistance.
David Fiala can be reached at firstname.lastname@example.org
Follow him on Twitter @davidfiala
(c) Copyright 2021 DTN, LLC. All rights reserved.
No other Daily email offers as much useful Ag information as DTN Snapshot – Sign up