DTN Closing Grain Comments

By Darin Newsom
DTN Senior Analyst

General Comments:

December corn closed 3 3/4 cents higher while the March closed 3 3/4 cents higher. November soybeans closed 26 1/2 cents higher while the January was 25 3/4 cents higher. December Chicago wheat closed 12 1/4 cents higher, July Kansas City was 13 cents higher, and December Minneapolis finished 8 cents higher. The U.S. dollar index was 0.082 lower at 94.759. December gold was $0.50 higher at $1,165.00 while December silver is $0.021 higher and December copper is $0.0290 lower. The Dow is 22 points lower at 17,109. November crude oil is $0.30 lower at $46.80. The November distillates (heating oil) contract is $.0268 lower while November RBOB gasoline is $.0244 lower and November natural gas is $0.034 lower.

Corn:

The corn market closed higher Tuesday, supported by the strong rally in soybeans. Corn contracts lacked the enthusiasm seen in the other grain markets though were able to finish near session highs. Commercial buying interest continues to be limited by dry harvest weather across the U.S. Midwest, allowing combines to roll. Direction early in the overnight session could depend on whether or not selling reemerges in the bean complex.

Soybeans:

Soybeans closed sharply higher Tuesday with the November finally able to clear minor (short-term) technical resistance at $8.98 3/4, setting the stage for an extended move to next resistance near $9.43 (for more information, see Tuesday afternoon's Technically Speaking blog). Commercial buying was evident throughout the day, hinting at interest from China. However, such moves are often met the next session (starting overnight) by increased selling, particularly with harvest ongoing.

Wheat:

Wheat contracts were slow to react to the rally in soybeans, but by the end of the day both Kansas City were showing double-digit gains with Minneapolis not far behind. Unlike soybeans, most of the buying looked to be noncommercial short-covering, a factor that could be confirmed in Friday's Commitments of Traders report (for the week ending Tuesday, October 13). While weather remains a concern over parts of the world's growing regions, commercial traders didn't show a lot of interest in Tuesday's rally.

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

Follow Darin Newsom on Twitter @DarinNewsom

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