DTN Before The Bell Grain Comments

Soybeans Surge, Corn Collapses!

(DTN photo by Greg Horstmeier)

Morning CME Globex Update:

December corn was 1 1/4 cents lower, November soybeans were 6 cents higher, December Chicago wheat was 1 1/2 cents higher, and July Kansas City wheat was 3/4 cent higher. Maybe "surge" and "collapse" are too strong of words, but given the slow nature of trade Tuesday morning any movement seemed exciting. Soybeans did finish near overnight session highs while corn was just off session lows. Winter wheat contracts were able to ride soybeans' coattails in quiet trade.

Other Markets:

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

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Corn:

The corn market slid lower over the course of the morning with the December contract finishing just off its low of $3.79 1/2. Recall that short-term technical support is pegged at $3.80 1/2, then $3.74. Tuesday morning will see the release of weekly export inspections, with weekly crop progress scheduled for the afternoon.

Soybeans:

November soybeans are at it again: Testing technical resistance near $8.98 3/4 with the history of the contract indicating it is doomed to fail. This line has held numerous challenges since Nov beans last closed above it on August 20. Weekly export inspections could be bullish Tuesday morning (for the week ending Thursday, October 8), but unlikely to put much of a charge in the market. USDA announced a sale of 240,000 tons of soybeans to China for the 2015-2016 marketing year.

Wheat:

Winter wheat contracts finished the overnight session higher, with the December Chicago contract holding above short-term technical price support near $5.05 1/4. However, volume was light at only 5,919 contracts meaning more active trade Tuesday could bring with it increased selling interest. Weekly export inspections are expected to be less than scintillating, with marketing year totals continuing to run well behind last year's anemic pace.

Darin Newsomcan be reachedat darin.newsom@dtn.com

FollowDarin on Twitter www.twitter.com\DarinNewsom

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