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9-23 Opening Update: Grains Slide Lower Again Today

ByGrain Market Insider

Grain Market Insider Interactive Quote Board

  • Corn futures are trading lower again this morning following Argentina’s announcement to scrap taxes on export sales until the end of October. December is down 1/4 cent at $4.21-1/2 and March is down 1/4 cent at $4.38-1/2.
  • Yesterday’s Crop Progress Report saw the corn crop rating down one point from last week at 66% good to excellent which compares to 65% a year ago. 11% of the crop is harvested which compares to 7% a week and and the average of 13%.
  • Export inspections were good for corn at 1,329k tons which compared to 1,513k last week and 1,150k a year ago. Top destinations were Mexico, Japan, and Colombia.

Corn Futures Consolidate Below Resistance: Following the release of the September WASDE report, corn futures pressed higher. Prices managed to break through the 100-day moving average but have since begun to consolidate below strong resistance at the July 7 price gap. The first point of support lies near 420, at the 100-day moving average.

  • Soybeans are trading lower this morning and are on track for their fourth consecutive loss as export demand remains a concern. November soybeans are down 5-1/2 cents to $10.05-1/4 and March is down 5 cents to $10.42. October soybean meal is down $2.50 to $276.40 and October bean oil is down 0.19 cents to 48.98 cents.
  • The Crop Progress Report saw crop ratings fall by 2 points from last week to 61% good to excellent which compares to 64% a year ago. Harvest is now 9% complete compared to 5% a week ago.
  • Yesterday’s export inspections were sluggish for soybeans at 484k tons which compared to 822k last week and 499k a year ago. Top destinations were to Egypt, Indonesia, and United Kingdom.

Soybean Futures Break Support: Soybean futures moved lower in rapid fashion, breaking through structural support as well as a cluster of three major moving averages. Trendline support lies near 970.

  • All three wheat classes are trading lower to start the day along with the rest of the grain complex. December Chicago wheat is down 1-1/4 cents to $5.09-1/2 and December KC wheat is down 2 cents to $5.00-1/4. Both are making new contract lows.
  • The Crop Progress Report saw that the spring wheat harvest is nearly wrapped up at 96% finished. This is on par with the 5-year average. The winter wheat crop is now 20% planted which is up from 11% a week ago.
  • Export inspections for wheat exceeded expectations yesterday at 854k tons which compared to 756k tons the previous week and 725k a year ago. Top destinations were to the Philippines, Mexico, and Venezuela.

Chicago Wheat Fails to Find Support: Wheat futures continue to trade lower after finding resistance in the 100-day moving average and breaking below the 50-day moving average. The next point of technical support is near 502, at the one year low.

KC Wheat Makes New Low: December KC wheat broke through its 50-day moving average in a strong fashion following the September WASDE report. The market has since turned lower, breaking back below the 50-day moving average and continuing lower to trade at new lows.

Spring Wheat Seeks Support: Spring wheat futures have failed to find solid support, trading at the lowest price since August 26, 2024. The first point of strong resistance sits near 585 at the 50-day moving average. A second point can be found through a cluster of moving averages near 600.

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

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