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10-24 Opening Update: Corn and Soybeans Slightly Lower, Wheat Higher

ByGrain Market Insider

Grain Market Insider Quote Board

  • Corn futures are trading slightly lower to start the day after solid gains yesterday and are still trading above the 100-day moving average. December corn is down 1-1/2 cents to $4.26-1/2 and March is down 1 cent to $4.40-1/4.
  • Bloomberg estimates for the export sales report for the week ending October 16 that is postponed see corn sales in a range between 800k and 1,600k tons with an average guess of 1,275k tons which would compare to 4,184k tons a year ago.
  • The Buenos Aires Grain Exchange updated its crop progress for Argentina with 33.8% of the crop reportedly planted which would be slightly ahead of last year. The 25/26 corn planted area is maintained at 7.8 million hectares.

Corn Futures Find Support: Corn futures rebounded from the 410 level, a key area of structural support. Prices have since risen and started to consolidate under 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 lower to start the day with November soybeans down 1-3/4 cents to $10.43 and March down 1-1/4 cents to $10.74. December soybean meal is up $0.20 to $292.50 and December bean oil is down 0.19 cents to 50.68 cents.
  • President Trump said he expects to reach a deal with China during the meeting with Xi on trade, soybeans, and potentially nuclear arms. This comes after a lot of waffling back and forth this week on whether or not a meeting would take place.
  • Bloomberg estimates for the postponed export sales report see soybean sales in a range between 700k and 2,000k tons with an average guess of 1,200k tons. This would compare to 2,088k last year.

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 mixed to start the day with December Chicago wheat up 3/4 cent to $5.13-3/4, KC wheat up 1-3/4 to $5.01-3/4, and Minn wheat down 1-3/4 cents to $5.56-1/4. Chicago wheat is nearly 20 cents off its recent low.
  • The IGC raised its estimate for global grain stockpiles on wheat and corn for the 25/26 season. Wheat stockpiles have been increased to 275 mmt from 270 mmt in a previous estimate.
  • The Buenos Aires Grain Exchange updated their estimates for wheat planting progress in Argentina. Production is estimated at 22.0 mmt which would compare to 18.6 mmt last year. 5.3% of the crop has been harvested at this point.

Chicago Wheat Finds Support: Wheat futures found support soon after breaking below the 502 level and have since started to trend slightly higher. 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 506.

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 569 at the 50-day moving average. A second point can be found at the 100-day moving average, near 589. 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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