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10-21 Opening Update: Grains Mixed With Soybeans Higher

ByGrain Market Insider

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  • Corn futures are mixed and trading quietly to start the day with December down 1/4 cent to $4.23 while March is up 1/4 cent to $4.37-1/4. Corn basis has been relatively steady at around 40 cents under December.
  • Estimates according to a Bloomberg poll see the US corn harvest at 59% complete as of October 19 which would compare to last week’s survey average of 45%. This would compare to the USDA last year at 65%.
  • Yesterday’s export inspections report saw corn inspections at 1,318k tons which compared to 1,210k tons last week and 1,001k a year ago. Top destinations were to Mexico, Japan, and Spain.

Corn Futures Find Support: Corn futures rebounded from the 410 level, a key area of structural support. Prices have since risen to retest overhead structural resistance near 424. Should prices break above, and with both the 50 and 100-day moving averages now acting as technical support, the next point of technical resistance lies near 430.

  • Soybean futures are higher again today with continued hope that the US and China will come to a trade agreement. November soybeans are up 5-3/4 cents to $10.37-1/2 and March is up 5-1/2 cents to $10.69-1/2. December soybean meal is up $1.20 to $286.40 and December soybean oil is up 0.02 cents to 51.34 cents.
  • The US soybean harvest is estimated to be 74% complete with a range between 61-80%. This would compare to last week’s survey guess of 60% and would compare to 81% at this time a year ago.
  • Yesterday’s export inspections saw soybean inspections at 1,474k tons which compares to 1,017k last week and 2,550k tons a year ago at this time. Top destinations are Mexico, Bangladesh, and Pakistan.

Soybeans Retest Overhead Resistance: Soybean futures found strength following dovish rhetoric regarding the current trade situation with China. Prices broke through strong technical resistance found in a band of major moving averages to retest the mid-September high. The next point of resistance can be found near 1062.

  • Wheat is trading lower to start the day but remains 10 cents off recent contract lows. December Chicago wheat is down 2 cents to $5.02-3/4, KC wheat is down 2-1/4 cents to $4.87-3/4, and Minn wheat is down 3/4 cent to $5.47-3/4.
  • Bloomberg surveys show that the winter wheat crop is likely 76% planted within a trade range of 74-80%. This would compare to 65% in last week’s survey and the 73% from the USDA last year.
  • Yesterday’s export inspections report saw wheat inspections at 481k tons which compared to 448k last week and 271k a year ago at this time. Top destinations were Nigeria, Thailand, and Korean Republic.

Chicago Wheat Finds Support: Wheat futures found support soon after breaking below the 502 level. With support established near 491, the first point of technical resistance is near 517 at the 50-day moving average.

KC Wheat Reverses, Begins Trending Higher: KC wheat has trended higher following a strong daily reversal on October 14. Structural support lies below, near 477. The first point of technical resistance can be found at the 50-day moving average, near 507.verage.

Spring Wheat Presses Lower: Spring wheat futures have failed to find solid support, trading at the lowest price since December 2020. The first point of strong resistance sits near 570 at the 50-day moving average. A second point can be found at the 100-day moving average, at 591. Technical support can be found near 540, the bottom of a consolidation range from December of 2020.

Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.

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