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DTN Midday Grain Comments     10/21 11:36

   All Grains Higher at Midday

   Corn is 4 to 5 cents higher, soybeans are 8 to 10 cents higher, and wheat is 
1 to 8 cents higher.

David M. Fiala
DTN Contributing Analyst

   The U.S. stock market is weaker with the Dow down 50 points. The dollar 
index is 50 points lower. Interest rate products are lower. Energies are mixed 
with crude off $1.40. Livestock trade is mostly lower. Precious metals are 
firmer with gold up $13.70.


   Corn trade is 4 to 5 cents higher at midday with strong spread action 
carrying trade to fresh highs again. The export wire was quiet today but action 
indicates more sales will likely show up soon. Ethanol margins will see 
pressure from corn values, with the weekly report showing production down 
24,000 barrels per day, with stocks down 287,000 barrels. Basis will likely 
remain solid with rains slowing harvest along with the upfront demand.  On the 
December contract resistance is the fresh high at $4.15 with support the 20-day 
at $3.87.


   Soybean trade is 9 to 10 cents higher at midday with trade building on the 
strong start to the week with steady to firmer spread action and more export 
sales expected even with the quiet wire today. Meal is $7.00 to $8.00 higher 
and oil is 10 to 20 points lower. The ral remains in the lower end of the 
range with planting progress in Brazil likely to pick up with plentiful rains 
short term, with Argentina still holding onto soybean supplies as an inflation 
hedge. Basis remains strong as we continue to work to max out our logistics 
capacity to ship the needed export bushels. The November chart has resistance 
at the fresh high at 10.79 3/4 with support the 20-day at 10.37.


   Wheat trade is 2 to 8 cents higher at midday with trade extending the streak 
of fresh highs to 5 days in a row. The ruble action continues to favor Russia a 
bit in the export markets but their domestic prices are now elevated with 
growing winter kill concerns, along with too much rain in Australia. Kansas 
City is at a 60-cent discount to Chicago with spreads backing off the recent 
highs, while Minneapolis is back to 53 cent discount with firmer action and 
fresh highs scored before reversing Monday. Rains look to be concentrated to 
the eastern growing areas in the short term. Kansas City December chart 
resistance is the fresh high at $5.79 1/2, and support is the 20-day at $5.26.

   David Fiala is a DTN contributing analyst and the President of FuturesOne 
and a registered adviser.
He can be reached at
Follow him on Twitter @davidfiala

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