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10-22 Opening Update: Mixed Trade Continues For Grains

ByGrain Market Insider

Grain Market Insider Quote Board

  • Corn futures are trading slightly higher this morning with December up 3/4 of a cent to $4.20-1/2 while March is also up 3/4 of a cent to $4.34-1/2. 
  • Export inspections remain a bright spot for the corn market, with Monday’s totals holding 61% ahead of the same period last year.
  • U.S. corn harvest is estimated to be 60%–70% complete, though rains this week may slow progress. Basis levels around the country remain firm for harvest time, an encouraging sign of underlying demand.

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 slightly higher this morning with November soybeans are up 3-1/4 cents to $10.34 and March is up 2-3/4 cents to $10.65-1/2. December soybean meal is down $0.70 to $286.20 and December soybean oil is up 0.11 cents to 50.75 cents.
  • In comments yesterday, President Trump suggested that his upcoming meeting with Chinese President Xi may not occur. The ongoing back-and-forth, coupled with the lack of data during the government shutdown, has kept soybean traders hesitant to extend risk.
  • Soybean oil futures were pressured Tuesday after the American Petroleum Institute reiterated its opposition to reallocating renewable volume obligations, a decision that the EPA has yet to announce.

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 mixed to start the day, December Chicago wheat is unchanged at $5.00-1/4, KC wheat is up a 1/4 cent to $4.85-1/4, and Minneapolis wheat is up a 1/2 cent to $5.45-1/4.
  • Gold futures suffered their largest one-day drop in prices yesterday, adding pressure to other commodity markets. The decline followed a surge to new all-time highs above $4,300 per ounce earlier in the week.
  • It has been difficult to find supportive news for the wheat complex, but competitively priced U.S. offerings have kept export inspections running 20% ahead of last year’s pace as of Monday’s data.

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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