DTN Before The Bell Grain Comments

Outside Markets Support Soybeans

(DTN photo by Greg Horstmeier)

Morning CME Globex Update:

December corn was 1/2 cent lower, November soybeans were 5 3/4 cents higher, December Chicago wheat was 2 3/4 cents lower, and July Kansas City wheat was 1 cent lower. The overnight rally in China's Shanghai Composite (stocks) and sell-off in the U.S. dollar index sparked renewed commercial buying in soybeans (both China's Dalian market and CBOT). However, the other grain markets were sluggish as early Monday morning progressed.

Other Markets:

DJIA futures Lower
U.S. Dollar Index: Lower
Gold: Higher
Crude Oil: Lower

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Corn:

Corn contracts finished overnight trade fractionally lower, with little activity seen over the last couple of hours. Trade volume from the overnight session totaled almost 28,000 contracts (Dec corn), heavier than most mornings but near normal for a harvest Monday. Speaking of harvest, traders will continue to monitor weather forecasts that look favorable for this week's harvest.

Soybeans:

Overnight support in soybeans came from the rally in China's stock markets, most notably the Shanghai Composite (up 14.40 points), and the lower U.S. dollar index. China's Dalian futures were also higher, sparking a round of light commercial buying in the U.S. CBOT market. Trade volume was solid with November showing 31,340 contracts at the close of the Globex session, higher than most mornings. Still, November soybeans have been unable to successfully breach technical resistance at $8.98 3/4.

Wheat:

The wheat complex finished overnight trade lower with most contracts near session lows. Pressure over the early morning hours emerged as the U.S. dollar index rallied off its low. Short-term trends for the December contracts of all three markets (Chicago, Kansas City, and Minneapolis) are all down with momentum indicators hinting at continued selling over the course of the day.

Darin Newsomcan be reachedat darin.newsom@dtn.com

FollowDarin on Twitter www.twitter.com\DarinNewsom

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