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DTN Midday Grain Comments 10/10 11:03
Corn, Soybean Futures Lower at Midday; Wheat Flat-Higher
Corn futures are 1 to 2 cents lower at midday Thursday; soybean futures are
3 to 4 cents lower; wheat futures are flat to 2 cents higher.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
Corn futures are 1 to 2 cents lower at midday Thursday; soybean futures are
3 to 4 cents lower; wheat futures are flat to 2 cents higher. The U.S. stock
market is weaker at midday with the S&P 10 points lower. The U.S. Dollar Index
is flat. The interest rate products are weaker. Energy trade has crude 1.30
higher and natural gas is .03. Livestock trade is mixed with hogs leading.
Precious metals are firmer with gold up 14.00.
CORN:
Corn futures are 1 to 2 cents lower with trade fading to nearby support
levels in quiet pre-report action. Ethanol margins should see support from
tighter stocks to start the month along with corn fading back to the lower end
of the range. On the WASDE report, trade is looking for yields down slightly at
183.3 bushels per acre (bpa) with carryout at 1.944 billion bushels (bb) versus
2.044 bb last month. Weather looks to keep harvest moving ahead with open
weather for the Corn Belt continuing. Basis action should drift lower as
harvest moves ahead. Weekly export sales remained strong at 1.22 million metric
tons (mmt). On the December chart, the 20-day moving at $4.17 3/4 is support
with the next round up at the fresh high at $4.34 1/4.
SOYBEANS:
Soybean futures are 3 to 4 cents lower at midday with early gains fading
again with meal the downside leader in products and harvest pressure limiting
upside. Meal is 3.50 to 4.50 lower and oil 10 to 20 points higher. Warm and dry
weather should keep pushing harvest further ahead of average. South America
should be able to begin catching up on planting pace near term with trade
watching weather to see how much moisture levels improve into midmonth. On the
WASDE report Friday, trade is looking for yields at 53.0 bpa versus 53.2 bpa
last month and carryout at 547 million bushels (mb) versus 550 mb last month.
Weekly export sales were solid at 1.26 mmt of beans, 165,700 mt of meal new
crop, and 86,600 for old with 3,800 of new crop oil, and 300 of old. Rapidly
filling storage should keep basis pressure ongoing. The November chart
resistance is at the 20-day moving average at $10.31, with the lower Bollinger
Band at $9.92 as the next level down as support.
WHEAT:
Wheat futures are flat to 2 cents higher at midday, pulling back a bit from
earlier strength as we continue to consolidate the upper end of the range. On
the report, trade is looking for carryout at 819 mb versus 828 mb last month.
Warm and dry weather will keep challenging Plains seeding, while the Black Sea
area is expected to see some moisture relief into midmonth. Weekly export sales
edged back higher at 433,600 mt. The dollar remains at the top of the recent
range with MATIF wheat slightly higher as well. On the KC December chart,
support is the 20-day moving average at $5.89, with the fresh high at $6.22 the
next level up.
David Fiala can be reached at dfiala@futuresone.com
Follow him on social platform X @davidfiala
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