Duffy Grain, Inc.
P.O. Box 250
Columbus, WI 53925
N3867 Baden St.
Columbus, WI 53925
6107 Twin Lane Rd.
Marshall, WI 53559
DTN Midday Grain Comments 09/19 11:27
Corn Near Steady; Soybeans, Wheat Higher at Midday
Soybeans and wheat are midday leaders, with corn remaining around unchanged.
By David Fiala
DTN Contributing Analyst
U.S. stock market indices are mixed with DOW futures up 185. Interest rate
products are firmer. The dollar index is 7 lower. Energies are higher with
crude up .95. Livestock trade is mixed after early pressure. Precious metals
are firmer with gold up $5.30.
Corn futures are flat to 1 cent higher at midday with trade grinding
sideways on little fresh news and ongoing harvest. Wetter, near-term weather
may slow harvest progress in many areas this week, while other areas are moving
along quickly. The weekly ethanol report showed production 31,000 barrels per
day higher, stocks were down 148,000 barrels with futures remaining at the
bottom of the range at 1.25. Corn basis will likely see more pressure from
harvest here in the near term. Crude is higher and back above $70 with the
dollar weaker, providing some outside market support On the December chart
support is at the fresh contract low printed Tuesday at $3.42 3/4 with the
10-day at $3.56 noted nearby resistance.
Soybean futures are 6 to 8 cents higher at midday with trade trying to build
support after the fresh lows scored this week amid harvest pressure and trade
concerns. Meal is $4 to $5 higher and oil is narrowly mixed. Soybean basis
remains historically wide across the belt with storage and shipping concerns
continuing to dominate. Crush margins remain strong in the near term. Early
planting in South America is underway with conditions on the dry side going in,
but no major concerns expected for a while and the Brazil and Argentina
currencies remain historically cheap with the real falling back to its lows.
U.S. and Brazil offers are near parity to China even with the tariffs with
broader Asian export interest in recent days and Brazil running low on
exportable bushels. On the November chart, support is fresh lows at $8.12 1/4
scored Tuesday, with the 10-day at $8.31 and the 20-day at $8.38 noted
Wheat futures are 6 to 9 cents higher at midday with better buying interest
continuing and world values continuing to work higher on the longer-term export
tenders. The U.S. dollar is at the bottom of the recent range. Russia will
continue to work on spring wheat harvest and winter wheat planting with mixed
moisture. Australia looks to have more mixed weather in the near term with
longer-term dryness still an issue as we get closer to harvest there, and some
frost in Western Australia. Matif milling wheat is firmer this morning. On the
December KC chart we have support at the lower Bollinger Band at $4.97 with
resistance 10-day at $5.16, which we are above at midday with the 20-day at
$5.29, the next round higher.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered adviser. He can be reached at email@example.com
Follow him on Twitter @davidfiala
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