DTN Midday Grain Comments 10/13 11:14
Grains Mostly Higher at Midday
Soybeans and wheat are the leaders at midday.
By David Fiala
DTN Contributing Analyst
The U.S. stock markets are mixed with the Dow futures up 5 points. The
interest rate products are lower. The dollar index is unchanged. Energies are
mixed with crude up $0.60. Livestock trade is mixed. Precious metals are mixed
with gold flat.
Corn trade is flat to 2 cents higher in quiet midday trade. The weekly
export inspections were a bit soft at 573,298 metric tons. The weekly progress
numbers should show harvest progress pushing past 40% complete when released
this afternoon. Ethanol margins are mostly sideways with ethanol values down
slightly along with corn, but not slipping along with unleaded gas. Ethanol
prices are running 18 cents a gallon over unleaded on the November futures;
this should lower ethanol discretionary blending and use if reflected at the
pump. On the nearby December chart nearby support is 50% retracement of the
recent move at $3.80, then the $3.75 late September low. The 20-day moving
average at $3.86 is resistance then the $3.99 3/4 2-month high printed last
Soybean trade is 15 to 18 cents higher at midday, with commercial buying
pushing the November contract through the $9.00 area. Meal is $6 to $7 higher,
and oil is 50 to 60 points higher. The weekly export inspections were very
strong at the 1.83 million metric tons. The weekly crop progress report should
show harvest past 55% complete. The weather looks fairly open in the near term
and should keep harvest moving at a fairly rapid pace. On the November chart
the contract low at $8.53 1/4 is long term support with the 20-day moving
average at $8.80 nearby support. Upside resistance is at the $8.95 50-day then
the $9.02 recent high, which we are above at midday.
Wheat trade is 5 to 8 cents higher across the three contracts at midday with
wheat finding good buying early on and following the lead of the soybeans. The
dollar has shown more weakness lately, which could improve buying interest buy
ample world supplies will limit rallies. There continues to be weather
questions in Australia and Russia with plenty of times for both crops to
recover. The planting progress should continue to run in line with average when
released tomorrow due to the dryer weather this past week. Weekly export
inspections were soft at 290,717 metric tons. On the Kansas City December chart
support is at the 50-day moving average at $4.95. Resistance is at the $5.20
seven-week high reached last Wednesday then the $5.32 100-day moving average.
David Fiala is a DTN contributing analyst and the President of FuturesOne
and a registered trading adviser.
David Fiala can be reached at email@example.com
Follow David Fiala on Twitter @davidfiala
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