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DTN Midday Grain Comments 10/31 10:49
Corn Futures Mixed at Midday; Soybeans Higher; Wheat Lower
Corn futures are narrowly mixed at midday Thursday; soybean futures are 4 to
5 cents higher; wheat futures are 4 to 7 cents lower.
David M. Fiala
DTN Contributing Analyst
MARKET SUMMARY:
Corn futures are narrowly mixed at midday Thursday; soybean futures are 4 to
5 cents higher; wheat futures are 4 to 7 cents lower. The U.S. stock market is
weaker at midday with the S&P 85 points lower. The U.S. Dollar Index is 16
points higher. The interest rate products are weaker. Energy trade is mixed
with crude up 1.00 with natural gas .11 lower. Livestock trade is mostly lower.
Precious metals are weaker with gold off 52.00.
CORN:
Corn futures are narrowly mixed at midday with the recent range continuing
to hold and spread action softening a bit. Ethanol margins look to remain
sideways in the short term with corn and unleaded trading ranges holding. Rains
moving through much of the Corn Belt should also allow fall fertilizer
application to get under way later in November with remaining harvest paused in
many areas. Weekly export sales remain strong at 2.342 million metric tons
(mmt) in the last reporting week, up 7% from the 4-week average. Basis action
is starting to firm in the areas that are done with harvest. On the December
chart, the 20-day moving average at $4.14 is resistance, with the recent low at
$3.98 below that as support.
SOYBEANS:
Soybean futures are 4 to 5 cents higher at midday with trade working back
toward the $10.00 area on the January contract after the Wednesday rebound with
oil continuing to lead the products. Meal is .50 to 1.50 lower and oil 120 to
130 points higher. Remaining harvest will pause with the rain. South America
continues to see an active pattern to boost planting and early development,
limiting weather premiums bid into the market. The daily export wire saw
150,000 mt soybean cake and meal sold to unknown destinations. The weekly
export sales remain strong at 2.273 mmt, up 39% from the 4-week average, with
meal seeing 208,400 sold, and 10,400 of oil. Basis should start to recover
further from harvest pressure. On the January chart, trade has support at the
fresh lows at $9.77 with the 20-day moving average at $10.08 the next level up.
WHEAT:
Wheat futures are 4 to 7 cents lower at midday with trade continuing to chop
in the lower end of the range with overall fresh news limited and the forecast
continuing to show better November moisture for the Plains. The second set of
storms into the weekend is expected to provide better coverage for the areas
lagging in emergence. MATIF wheat is weaker Thursday morning while the dollar
continues to edge away from the recent highs. Weekly export sales pace eased a
little at 411,100 metric tons, off 14% from the last four weeks. On the KC
December chart, support is the lower Bollinger Band at $5.61, which we bounced
from Wednesday, and resistance at the 20-day moving average of $5.88.
David Fiala can be reached at dfiala@futuresone.com
Follow him on social platform X @davidfiala
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