DTN Midday Grain Comments 10/21 11:36
All Grains Higher at Midday
Corn is 4 to 5 cents higher, soybeans are 8 to 10 cents higher, and wheat is
1 to 8 cents higher.
David M. Fiala
DTN Contributing Analyst
The U.S. stock market is weaker with the Dow down 50 points. The dollar
index is 50 points lower. Interest rate products are lower. Energies are mixed
with crude off $1.40. Livestock trade is mostly lower. Precious metals are
firmer with gold up $13.70.
Corn trade is 4 to 5 cents higher at midday with strong spread action
carrying trade to fresh highs again. The export wire was quiet today but action
indicates more sales will likely show up soon. Ethanol margins will see
pressure from corn values, with the weekly report showing production down
24,000 barrels per day, with stocks down 287,000 barrels. Basis will likely
remain solid with rains slowing harvest along with the upfront demand. On the
December contract resistance is the fresh high at $4.15 with support the 20-day
Soybean trade is 9 to 10 cents higher at midday with trade building on the
strong start to the week with steady to firmer spread action and more export
sales expected even with the quiet wire today. Meal is $7.00 to $8.00 higher
and oil is 10 to 20 points lower. The ral remains in the lower end of the
range with planting progress in Brazil likely to pick up with plentiful rains
short term, with Argentina still holding onto soybean supplies as an inflation
hedge. Basis remains strong as we continue to work to max out our logistics
capacity to ship the needed export bushels. The November chart has resistance
at the fresh high at 10.79 3/4 with support the 20-day at 10.37.
Wheat trade is 2 to 8 cents higher at midday with trade extending the streak
of fresh highs to 5 days in a row. The ruble action continues to favor Russia a
bit in the export markets but their domestic prices are now elevated with
growing winter kill concerns, along with too much rain in Australia. Kansas
City is at a 60-cent discount to Chicago with spreads backing off the recent
highs, while Minneapolis is back to 53 cent discount with firmer action and
fresh highs scored before reversing Monday. Rains look to be concentrated to
the eastern growing areas in the short term. Kansas City December chart
resistance is the fresh high at $5.79 1/2, and support is the 20-day at $5.26.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered adviser.
He can be reached at email@example.com
Follow him on Twitter @davidfiala
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