DTN Midday Grain Comments 09/26 11:25
All Grains Lower at Midday
Beans are slipping at midday nearing doubledigit losses, pulling corn and
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are lower with the Dow down 160 points. The
interest rate products are higher. The dollar index is 33 lower. Energies are
higher with crude up 1.45. Livestock trade is lower. Precious metals are mixed
with gold up $3.
Corn trade is 5 to 6 cents lower at midday, which has us near the daily
lows, despite good weekly export inspections. We were steady to lower since the
opening bell last night due to harvest pressure and some chart pressure. The
weekly export inspections were 1.336 million metric tons. Many viewed the
20-day moving average as major support at $3.31 3/4 which we are now below, so
chart pressure could be an issue this afternoon if we cannot get back above
this level. Outside markets are mixed with stocks down but the dollar is lower
and crude is higher. This is limiting downside here at midday. Overall harvest
weather is good so harvest activity could accelerate this week. The December
contract chart support is at $3.26 1/2, the three-week low, then the contract
low at $3.14 3/4. The 20-day at $3.31 3/4 is nearby resistance then $3.40, last
week's high, then $3.44 1/4, the August-September high.
Soybean futures are 8 to 9 cents lower at midday, meal is down $5 and bean
oil is down 5 points. We are at the daily lows with some downside momentum. A
smaller weekly inspection number and talk of good U.S. yields have been noted
for our lower midday trade, but we have not dropped to new September lows. The
chart is below all major moving averages so it may be hard to keep beans from
slipping further today and this week. Weather should allow for a good harvest
pace as we enter October. The weekly export inspections were only 383,953
metric tons and futures slipped after this number. The weekly progress and
condition report should note harvest just ahead of normal and conditions
steady. On the November soybean chart support is at $9.43, then $9.37.
Resistance is at the $9.62 level where we find both the 10-day and 20-day
Wheat trade is 4 to 7 cents lower at midday with futures a few pennies off
the morning lows following a good inspections number. The weekly export
inspections were good at 875,049 metric ton. Any fresh export news will be
good, but we need consistent weekly news to turn traders into demand bulls due
to our historic low wheat prices right now. Our burdensome domestic and global
supplies continue to keep world buyers hand to mouth with little price concern.
On the Kansas City December chart support is at $4.14, the 20-day and lowest
major moving average; resistance is at $4.25 3/4 which is the September high.
David Fiala can be reached at firstname.lastname@example.org
Follow David Fiala on Twitter @davidfiala
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