DTN Closing Grain Comments

Only a Mildly Manic Monday

(DTN illustration by Nick Scalise)

General Comments:

December corn closed 2 cents lower while the March closed 1 3/4 cents lower. November soybeans closed 1 3/4 cents higher while the January was 2 cents higher. December Chicago wheat closed 2 1/2 cents lower, July Kansas City was 2 1/4 cents lower, and December Minneapolis finished 1 1/4 cents lower. The U.S. dollar index was 0.015 higher at 94.828. December gold was $6.20 higher at $1,162.10 while December silver is $0.007 higher and December copper is $0.0040 lower. The Dow is 26 points higher at 17,110. November crude oil is $2.48 lower at $47.15. The November distillates (heating oil) contract is $.0859 lower while November RBOB gasoline is $.0739 lower and November natural gas is $0.035 higher.

Corn:

The corn market closed lower Monday after doing little for much of the session. As discussed in earlier analysis, December corn's short-term trend remains down with initial support near $3.80, then $3.76. With little news to provide direction the market drifted for most of the day. It's possible the sharp sell-off in crude oil put spillover pressure on corn. It would not be surprising to see follow-through selling early in the overnight session.

P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]

Soybeans:

Soybean contracts were able to hold onto only a small part of Monday's early rally, a move that saw the November contract extend to as much as almost 9 cents higher. Early commercial buying interest died out around midday, along spillover pressure from other markets to slowly erode its gains. Given the small rally the market could see increased pressure early in the overnight session, possibly through Tuesday morning.

Wheat:

Wheat contracts couldn't build buying enthusiasm over the course of Monday's session, sliding lower early in Monday's trade and staying there at the close. Chicago did bounce above unchanged during the session, but never posed much of a threat to extend a rally. Commercial traders stayed on the sidelines for much of the day, not showing much interest in the proceedings.

Darin Newsom can be reached at darin.newsom@dtn.com

Follow Darin Newsom on Twitter @DarinNewsom

(BAS)

P[L2] D[728x90] M[320x50] OOP[F] ADUNIT[] T[]
P[R1] D[300x250] M[300x250] OOP[F] ADUNIT[] T[]
P[R2] D[300x250] M[320x50] OOP[F] ADUNIT[] T[]
DIM[1x3] LBL[] SEL[] IDX[] TMPL[standalone] T[]
P[R3] D[300x250] M[0x0] OOP[F] ADUNIT[] T[]