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DTN Midday Grain Comments 10/27 10:51
Corn, Soybeans Looking Up Midday Wednesday
Corn trade is 12 to 13 cents higher, beans are 4 to 5 cents higher and wheat
is flat to 6 cents higher.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
The U.S. stock market is mixed with the Dow down 130 points. The U.S. Dollar
Index is 0.05 lower. Interest rate products are mixed. Energies are weaker with
crude down $1.25. Livestock trade is mixed with live cattle leading. Precious
metals are mixed with gold flat.
CORN:
Corn trade is 12 to 13 cents higher at midday Wednesday, pushing through
nearby resistance and firm spread trade to test multiweek highs. Ethanol
margins should support production near term with stocks falling 155,000 barrels
as production rose another 10,000 barrels to extend the winning streak. Basis
should remain steady to firmer short term as harvest pressure eases. On the
December contract, we have chart support at the 20-day at $5.32 and resistance
at the retracement levels of $5.68 after we moved past the upper Bollinger Band
at $5.53 this morning.
SOYBEANS:
Soybean trade are 4 to 5 cents higher at midday with trade fading from the
test of $12.50 Wednesday morning, with the export wire quiet with oil side of
the complex sliding. Meal is $5.50 to $6.50 higher and oil is 0.90 cent to 1.00
cent lower, with meal needing to consolidate gains to boost crush values.
Brazil looks to have good short-term conditions with Argentina more mixed
nearby, but major issues limited overall in early planting. On the November
soybean chart, trade is just above the 20-day at $12.31 with the recent high at
$12.57 1/2 the next round up as the morning high, with further support at the
lower Bollinger Band at $11.98.
WHEAT:
Wheat trade is flat to 6 cents higher at midday with Chicago holding up the
best as Minneapolis tries to shake off the late reversal Tuesday. The dollar
remains in the upper part of the recent range in quieter action. Spring wheat
remains at a 2.62-cent premium to Chicago, with KC at 22-cent premium in weaker
action after fresh highs were scored Tuesday. Weather in the Plains had some
moisture to boost early stands but remains mixed. KC December chart support is
at the 20-day at $7.49 with resistance at the upper Bollinger Band at $7.82,
which tested Tuesday with the fresh high at $7.90 above that.
David Fiala can be reached at dfiala@futuresone.com
Follow him on Twitter @davidfiala
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