DTN Midday Grain Comments 09/29 10:53

DTN Midday Grain Comments     09/29 10:53

   Corn, Beans and Wheat Lower

   Corn trade is 2 cents to 3 cents lower; beans are 5 cents to 7 cents lower 
and wheat trade is 5 cents to 6 cents lower.

David M. Fiala
DTN Contributing Analyst

MARKET SUMMARY:

   The U.S. stock market is firmer with the S&P 500 up 20. The dollar index is 
18 points lower. Interest rate products are firmer. Energies are mixed with 
crude at .75 lower and natural gas .01 higher. Livestock trade is sharply 
lower. Precious metals are mixed with gold 7 lower.

CORN:

   Corn trade is 2 cents to 3 cents lower at midday with trade holding near the 
recent highs as we head towards today's quarterly stocks report and harvest 
continuing to move forward. Ethanol margins will likely stay sideways 
short-term with driving demand stable into early fall with unleaded pulling 
back a little more to press blender margins this morning.

   The daily wire saw a few sales to Mexico of 223,450 metric tons (mt) and 
137,160 mt. Basis should drift lower for early harvest with a better pace 
expected into the weekend. On the report today, trade is looking for stocks at 
1.429 billion. On the December chart, the 20-day at $4.81 1/4 is support which 
we need to get trade more excited with the $5 area looming above the market, 
with the recent low at $4.67 3/4 as further support.

SOYBEANS:

   Soybean trade is 5 cents to 7 cents lower with trade seeing broad product 
weakness and harvest pressure as we hold just above the recent lows. Meal is 
4.50 to 5.50 lower and oil is 20 to 30 points lower. The daily wire has been 
quiet this week.

   Basis will fade with harvest picking up again with the river system still 
declining inflows. South American weather shouldn't limit planting progress 
much short-term with rains starting to move into Central Brazil, although on 
the light side. On the report, trade is looking for stocks at 242 million 
bushels. November chart support is a fresh low at $12.84 1/2, with resistance 
to the 20-day at $13.32.

WHEAT:

   Wheat trade is 5 cents to 6 cents lower with selling pressure returning in 
the day session as fade KC to fresh lows ahead of the report. Matif wheat is 
lower with the dollar just below 10-month highs even with the early weakness. 
Plains planting progress should move forward with warm and drier conditions 
likely to challenge stands early with the second week possibly wetter while 
Australia struggles. Little change in the Black Sea situation is seen with 
bushels still moving out and planting just underway.

   On the report, trade is looking for stocks at 1.772 billion bushels. On the 
KC December chart, the 20-day at $7.23 is resistance with the lower Bollinger 
Band at $6.87 which we are just below at midday with the fresh low at $6.79.

   David Fiala can be reached at dfiala@futuresone.com 

   Follow him on X, formerly Twitter, @davidfiala




(c) Copyright 2023 DTN, LLC. All rights reserved.