DTN Midday Grain Comments     10/08 10:54

   Corn, Soybean Futures Lower at Midday; Wheat Flat-Lower

   Corn futures are 5 to 6 cents lower at midday Tuesday; soybean futures are 
18 to 20 cents lower; wheat futures are flat to 2 cents lower.

David M. Fiala
DTN Contributing Analyst

MARKET SUMMARY:

   Corn futures are 5 to 6 cents lower at midday Tuesday; soybean futures are 
18 to 20 cents lower; wheat futures are flat to 2 cents lower. The U.S. stock 
market is firmer at midday with the S&P 42 points higher. The U.S. Dollar Index 
is 5 points higher. The interest rate products are weaker. Energy trade has 
crude 3.90 lower and natural gas is unchanged. Livestock trade is lightly 
firmer. Precious metals are weaker with gold down 34.00.

CORN:

   Corn futures are 5 to 6 cents lower at midday with spillover pressure from 
soybeans and harvest pressure pulling action further off the upper end of the 
range. Ethanol margins should stay rangebound with corn and unleaded weakness 
Tuesday. Weather looks to keep harvest moving along in the short term with 
flammability issues to persist. Weekly crop progress showed corn 87% mature 
versus 81% on average and 30% harvested versus 27% on average. Corn condition 
was rated 64% good to excellent and 13% poor to very poor. Basis action should 
see more pressure as bushels accumulate in the short term. On the December 
chart, the 20-day moving average at $4.16 1/4 is support with the next round up 
at the fresh high of $4.34 1/4.

SOYBEANS:

   Soybean futures are 18 to 20 cents lower at midday with harvest pressure and 
product weakness pushing trade back below nearby support levels. Meal is 2.00 
to 3.00 lower and oil is 135 to 155 points lower. Warm and dry weather should 
push harvest further ahead of average. The weekly crop progress report showed 
90% dropping leaves versus 85% last year and 47% harvested versus 34% on 
average. Soybean conditions were rated 63% good to excellent and 11% poor to 
very poor. South America should be able to catch up on planting pace in the 
near term with trade watching weather to see how much moisture levels catch up. 
The daily export wire saw 166,000 metric tons (mt) sold to China. Basis will 
likely continue to soften in the short term as available commercial storage 
fills up. The November chart resistance is at the 20-day moving average of 
$10.31, which we fell through overnight, with the lower Bollinger Band at $9.89 
as the next level down as support.

WHEAT:

   Wheat futures are flat to 2 cents lower with trade continuing to consolidate 
recent action above nearby support levels with row crop action limiting upside 
with light two-sided action overall so far. Warm and dry weather will likely 
slow Plains planting a bit. The weekly crop progress report showed 51% planted 
versus 52% on average and 25% emerged, the same as average. Improvement is 
expected for winter wheat areas in the Black Sea. The dollar is just off the 
recent highs with MATIF wheat edging higher. On the KC December chart, support 
is the 20-day moving average at $5.87, 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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